Gas Natural Fenosa sells its fiber optic infra unit

Gas Natural Fenosa sold its Spanish and Latin American fiber optic network provider, Gas Natural Fenosa Telecomunicaciones (GNFT), to London-based private equity firm Cinven for 510mn euros (US$693mn).

The Spanish energy giant will receive 250mn euros, before tax, from the sale of its telecom unit, Fenosa said in a release.

GNFT, a neutral telecom operator, has 34,249km of fiber optic infrastructure in Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Spain.

The company said 55% of its revenue in 2013 was generated in Spain and 45% from its Latin American operations.

Cinven said it was aiming to get ahead of the growing data transmission demand curve and that the purchase will provide it with access to GNFT's high-growth markets in Central America and South America.

Cinven principal Thomas Railhac said in a press release: "The principal growth drivers for broadband globally are cloud computing, high speed fixed and mobile access and data explosion.

"These are driving increased demands for broadband capacity and, as a result, greater investment in fiber optic networks. Neutral carriers, like GNFT, are well positioned to capitalize on this explosion in capacity demand."