Investment firm KKR (NYSE: KKR) has reached an agreement with the Board of Directors of Red Eléctrica Group to acquire a 49% stake in subsidiary Reintel for a total of €971 million (US$1.09 billion).

The transaction comes after a four-month sale process to acquire the large share stock in Reintel, one of the main dark fibre infrastructure operators in Spain.

Red Eléctrica Group will continue to be the controlling shareholder and will retain accounting consolidation of Reintel.

The agreed transaction value represents an enterprise value of €2.3 billion ($2.59 billion) for 100% of the business, implying an EV/2021E EBITDA of 22.1 times.

In a joint statement, the parties said: “Both shareholders are fully committed to creating long-term value for Reintel, underpinned by the company’s existing strong position in the dark fibre market and the deployment of resources by KKR to support its ongoing business and harness future growth opportunities.”

Roberto García Merino, CEO of Red Eléctrica Group, added: “Following an extremely thorough research process, we are delighted to have reached an agreement with KKR, which will be a highly prestigious, long-term strategic partner to the Group going forward.

“This agreement clearly underscores the value of the Group’s telecommunications activity and will support its future development, reinforcing the essential services we provide to society.”

The transaction is subject to customary conditions including the applicable regulatory approvals and is expected to close in Q2 2022.

UBS and Barclays acted as financial advisors to Red Eléctrica Group and Garrigues as legal advisor.