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  5. CVC Capital Partners chooses Galicia and the operator R to lead its investment in telecommunications
Details
Category: Companies
Carlos Martinez By Carlos Martinez
Carlos Martinez
Monday, April 19, 2010

CVC Capital Partners chooses Galicia and the operator R to lead its investment in telecommunications

Funds advised by the venture capital firm CVC Capital Partners have acquired, through a Spanish company controlled by them, a 35% stake in R, the Galician fiber optic telecommunications operator, valuing 100% of the company at around 675 million euros.
The transaction represents a liquidity injection and strengthens R's financial structure. The entry of companies controlled by the CVC funds as major shareholders, alongside Caixanova (which retains a 65% stake after this transaction), will boost R's expansion and growth in other markets, while also consolidating its leading role in the development of the Galician telecommunications sector.

R began operations in 2000 with the ambitious and risky goal of creating a new, modern fiber optic telecommunications infrastructure from scratch in Galicia. With 140,000 km of fiber deployed in more than 74 towns across Galicia, R has established itself in just 10 years as the leading operator in the Galician telecommunications market. It provides a comprehensive service including fixed and mobile telephony, internet, multi-channel pay television, and advanced telecommunications services for businesses, currently benefiting more than 250,000 families, professionals, and companies throughout Galicia.
Besides:
- Caixanova maintains its position as the company's main shareholder with a 65% stake
. - In its 29-year history, this is the first investment by CVC Capital Partners, a world leader in private equity, in the telecommunications sector
. - CVC's entry into R's capital will boost the company's growth plans in new markets, committing more than €1.5 billion in investment over the next 5 years, a significant portion of which will be concentrated in Galicia.
- R's expansion beyond Galicia was already one of Caixanova's stated objectives when it invested €150 million a year ago to acquire a majority stake in the operator.
Caixanova and CVC will maintain R's commitment to the Galician community, as well as the company's culture and values. R will maintain its headquarters and operations in Galicia to grow from there to other regions.
Carlos Martinez
Carlos Martinez
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