Red Eléctrica buys 90% Hispasat stake for €949 million

Spanish electricity and telecommunications infrastructure firm, Red Eléctrica Corporación, has agreed to buy Abertis’ 89.68% stake in satellite operator Hispasat for €949 million.

The deal was agreed by Red Eléctrica subsidiary Red Eléctrica Sistemas de Telecomunicaciones (RESTEL) and will allow the firm to expand its telecoms business into new customer segments and geographical areas.

“Moreover, it will be a definite step forward in the consolidation of the Red Eléctrica Group as a global operator of infrastructure of a strategic nature both in Spain and internationally; managing electricity transmission grids, fibre optic networks and satellites,” said the company in a statement.

The deal is due to be completed in the second quarter, pending regulatory clearances, but has been approved by the boards of both companies. The post-transaction shareholding structure of Hispasat will be: Red Eléctrica Corporación, 89.68%; SEPI, 7.41%; and CDTI, 2.91%.

Hispasat claims to be the number one operator of satellite infrastructure in Spain and Portugal, the fourth operator in Latin America and the eighth operator worldwide.

The company had revenues of €204 million in 2018 and currently has a fleet of seven satellites that provide coverage to Europe and the American continent, distributing more than 1,250 TV and radio channels.

Red Eléctrica runs the national electricity grid in Spain and has also invested in electricity transmission infrastructure abroad. In 2015 the firm diversified its activities after making advances internationally in markets like Peru and Chile and consolidated its telecoms activity through the creation dark fibre operator  Reintel.