UPDATE 2-Private equity firm Cinven buys telecom unit from Spain's Gas Natural

lunes 9 de junio de 2014 08:12 GYT

* Cinven buys GNFT for 510 mln euros

* Spain's biggest private equity buyout this year

* Cinven targets Latin American growth (Adds Cinven comment, details)

By Freya Berry and Paul Day

LONDON/MADRID, June 9 (Reuters) - European private equity firm Cinven has bought the fibre network arm of Spanish utility Gas Natural for 510 million euros ($694.4 million), the companies said on Monday, in Spain's biggest private equity buyout of the year.

Gas Natural will book capital gains of around 250 million euros, before tax, from the sale of Gas Natural Fenosa Telecomunicaciones (GNFT), the Spanish group said.

GNFT offers services across cities in Spain and Latin America. Its core earnings (EBITDA) grew at a compound annual growth rate of 13 percent over the last three years, including a rate of 20 percent in Latin America.

"There will be an increase in data transmission, with fibre being the backbone for that growth to happen," Jorge Quemada, partner at Cinven, said in a telephone interview with Reuters.

"We see opportunities to deploy more fibre in Central America and Colombia."   Continuación...