William Malcolm

Cordiant Digital Acquires Ceske Radiokomunikace

Cordiant Digital Infrastructure funds have bought the largest domestic operator of television and radio transmitters České Radiokomunikace (ČRa) from Macquarie Asset Management funds. The Australian Macquaries worked for Czech Radiocommunications for ten years. They stated this in a press release today. They did not publish the price, but according to analysts’ estimates, it could reach CZK 20 to 30 billion.

Cordiant Digital Infrastructure is traded on the main market of the London Stock Exchange. It invests primarily in the basic infrastructure of the digital economy, such as data centers, fiber optic networks and mobile transmitters in the United Kingdom, Europe and North America. Its shareholders are diverse, from private individuals to fund managers. Unlike a traditional private or infrastructure fund, Cordiant’s capital is in the same regime as any other listed company and does not have to be repaid to shareholders, the report said.

In the fiscal year ending March 2020, České Radiokomunikace reported revenues of CZK 2 billion and a loss of CZK 576 million. The Czech Republic operates a network of 660 telecommunication transmitters, of which 86 are used for the transmission of television and 97 for the transmission of radio signals, and 3730 kilometers of optical cables. In addition to supporting nationwide broadcasting and connectivity, České Radiokomunikace also offers cloud and data center services and is at the forefront of the development of Internet of Things technology across the Czech Republic.

“České Radiokomunikace is a national champion with an unrivaled portfolio of assets in a key European country. We look forward to continuing to build České Radiokomunikace together with their strong management team, employees and other important partners as a leading digital infrastructure platform serving broadcast, telecommunications and data center markets. , “Said Steven Marshall, Chairman of the Board of Cordian Digital Infrastructure.

Macquarie European Infrastructure Fund II (MEIF2), Macquarie European Infrastructure Fund III (MEIF3) and Macquarie Mercer Infrastructure Trust joined České Radiokomunikace in 2011. Since then, České Radiokomunikace has been at the forefront of the transition to the second generation of DVB-T2 digital terrestrial television. and broadcasting of DAB + digital radio in the Czech Republic. České Radiokomunikace is also investing in the deployment of fifth-generation (5G) mobile networks and has built facilities for offering services in the area of ​​the Internet of Things, cloud services and data center services.

According to CEO Vít Vážan, the Czech Republic has in recent years transformed from a television and radio broadcaster into an advanced diversified technology company that excels in unique infrastructure, technological excellence and highly reliable and secure products and services. As part of Cordiant Digital Infrastructure Limited, we will continue to provide services to existing customers and expand into new business segments, “he added.

According to Capitalinked.com analyst Radim Dohnal, infrastructure funds regularly sell their investments after five to ten years. “Here, sellers have certainly been helped by the relaxed monetary policy of the central banks of the developed world, which raises the prices of all fixed-income assets. It also helps that data transfer assets are now quite preferred. The transaction price was not disclosed, but can be expected It can be expected that the new owner will want to get a relatively generous award with a slight pressure on prices or contractual conditions.This is not very good news for the telecommunications market, but the good news is that the buyer is not a company from a country hostile to the Czech Republic or the EU, “Dohnal said.

Macquarie Asset Management in the Czech Republic currently manages investments in GasNet, which operates a 65,000-kilometer gas distribution network with 2.3 million connections throughout the Czech Republic.

The investment manager of the Cordiant Digital Infrastructure Trust funds is Cordiant Capital. Cordiant invests in global infrastructure, real estate and, in the form of limited partner funds and managed accounts, also in private infrastructure loan and equity financing. Cordiant’s client base includes global insurance companies, pension companies and family asset managers.