Exclusive-Brookfield taps banks to launch stake sale in French towers firm TDF -sources

div classBodysc17zpet90 cdBBJodivpBy Pamela Barbaglia and Andres Gonzalezp

pLONDON Reuters – Canadas Brookfield Asset Management is working with banks to launch the sale of its 45 stake in French towers firm TDF Group as it seeks to capitalize on growing demand for key infrastructure assets across Europe, sources told Reuters.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pBrookfield has drafted in Citigroup and Credit Suisse to work on the sale which could value TDF at more than 5 billion euros 5.30 billion, three sources said, speaking on condition of anonymity.p

pTDF – a former unit of Frances leading telecoms operator Orange – provides strategic broadcasting and telecoms infrastructure across France with its radio antennas sitting on top of the Eiffel Tower in Paris.p

pBrookfield‘s move to cash out from TDF comes at a time of frantic investments in European towers’ companies, with major operators including Deutsche Telekom and Vodafone currently in talks with investment funds to sell all or part of their crown infrastructure jewels.p

pBrookfield and Credit Suisse declined to comment.p

pTDF and Citi were not immediately available for comment.p

pBrookfield is looking to move fast after previous discussions to sell all or part of its TDF stake fell through, the sources said.p

pThe Canadian investment firm led an investment consortium that took control of TDF in 2015 and currently ranks as the companys single largest investor with a 45 stake.p

pBrookfield is looking to kick off an auction process before the summer, targeting deeppocketed infrastructure investors that seek to deploy capital in core European markets, the sources said.p

pThree other investment firms – PSP Investments, APG Asset Management NV and Arcus Infrastructure Partners – control a combined 45 stake while Credit Agricole Assurances owns the remaining 10.p

PSP has hired Lazard to decide whether to follow in Brookfields footsteps and sell out, one of the sources said. p

PSP and Lazard declined to comment.p

APG has instead decided it would continue investing in TDF as it sees scope to reap more profit from the company, which last year made core earnings of 464 million euros, another source said.p

APG declined to comment.

In March, TDF installed a 6 metre 20 ft high radio antenna atop the Eiffel Tower to provide access to DAB digital radio broadcasting – an upgraded version of DAB digital radio for better quality transmission – resulting in the Eiffel Tower growing to a height of 330 metres.p

Yet, TDFs broadcasting business is seen as less attractive by investors who value its telecoms towers network at much higher multiples since viewers increasingly rely on Internet TV to stream video content.

1 0.9430 eurosp

Reporting by Pamela Barbaglia and Andres Gonzalez Editing by Susan Fentonp

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