May 24, 2022
EQT Mulls Sale of Stake in $7.5 Billion Nordic Fiber Arm
(Bloomberg) -- Private equity firm EQT AB is considering the sale of a minority stake in Nordic fiber network operator GlobalConnect, people with knowledge of the matter said.
EQT’s infrastructure arm is working with advisers on the potential divestment, which could attract interest from other investment funds as well as pension managers, the people said. A deal could value GlobalConnect at between 7 billion euros ($7.5 billion) and 10 billion euros including debt, according to the people, who asked not to be identified because the information is private.
GlobalConnect offers high-speed internet services to enterprises as well as home fiber optic connections. It operates about 100,000 kilometers (62,100 miles) of fiber, connecting more than 650,000 homes and about 30,000 corporate customers, according to EQT’s website.
Demand for infrastructure assets has been booming due to the steady, long-term returns they generate. EQT first invested in GlobalConnect in 2017 and has since expanded it through acquisitions.
The company’s revenue rose 2.5% last year to 609 million euros, while adjusted earnings before interest, taxes, depreciation and amortization increased 13% to 307 million euros. GlobalConnect had about 28 billion krona ($2.8 billion) of net interest-bearing liabilities at the end of the year, according to its annual report.
EQT owns GlobalConnect through its third infrastructure fund, which was raised in 2017, and a successor pool which closed two years later, its website shows.
Deliberations are ongoing, and there’s no certainty they will lead to a transaction, the people said. A representative for GlobalConnect referred queries to the company’s private equity owner. A spokesperson for EQT declined to comment.
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