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EQT, Stonepeak share stake in Netherlands’ largest fibreco player

Firms plan to capitalise on strong fibre demand as operator is set to undergo a US$2.31 billion expansion backed by a consortium of national and international banks.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

October 07, 2021 | 2:18 AM BST

Alternative investment firm Stonepeak Infrastructure Partners LP is preparing to become a 50% stakeholder in Dutch fibre telecom infrastructure operator DELTA Fiber through an acquisition with Sweden’s private equity firm EQT.

DELTA Fiber is currently hold by EQT Infrastructure III. Under the deal, EQT Infrastructure V and Stonepeak have agreed to buy the business from the fun and each will hold a 50% interest in the company and co-control DELTA Fiber.

The transaction is subject to customary conditions and approvals. It is expected to close in December 2021.

With the acquisition of a stake in DELTA Fiber, EQT Infrastructure V is expected to be 60-65% invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).

Marco Visser, CEO of DELTA Fiber, said: “Two leading international investors joining DELTA Fiber confirms our success in recent years. That EQT is choosing to invest in our company again, together with Stonepeak, shows confidence in our ambitious plans for the future. Together they provide us with a solid foundation for further growth.”

Under the 50/50 scheme, EQT and Stonepeak will continue to invest in expanding DELTA Fiber’s footprint across the Netherlands, as the two also aim to roll out further expansion projects across Europe with other brands.

The companies have set a goal to reach a footprint of two million Dutch fibre connections by 2025 under DELTA Fiber, thereby covering a quarter of the country, through the deployment of €2 billion ($2.31 billion) backed by a consortium of national and international banks.

Matthias Fackler, Partner within EQT Infrastructure’s Advisory Team, said: “We are deeply impressed by DELTA Fiber’s management and employees’ strong performance over the past few years. EQT Infrastructure is excited to support their continued journey of digitising the Netherlands by providing high-quality broadband infrastructure to Dutch households and businesses.”

Cyrus Gentry, Managing Director at Stonepeak, added: “DELTA Fiber, with its unique asset base and industry-leading management team, represents a compelling investment opportunity that will complement Stonepeak’s existing global portfolio of residential broadband-focused platforms.”

Headquartered in Schiedam, DELTA Fiber provides high-speed broadband, TV and fixed and mobile telephony to Dutch households and businesses connected to its fibre-to-the-home (FTTH) network.

DELTA Fiber owns and operates approximately 50,000 km fibre-based network infrastructure that connects approximately 900,000 households and businesses across the Netherlands.

The company employs approximately 600 people and was established as DELTA Fiber in 2018, following a combination of DELTA and CAIW, which were acquired by EQT Infrastructure III in February 2017 and January 2018, respectively.

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João Marques Lima

Founder and Editor, The Tech Capital

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