LONDON, May 5 (Reuters) – Canadian investment firm Brookfield Asset Management BAMa.TO is working with banks to sell its 45% stake in French firm TDF as it seeks to capitalize on growing demand for infrastructure assets in Europe, sources told Reuters.
Brookfield tapped Citigroup CN and Credit Suisse
CSGN.S to prepare the sale which could value TDF at more than five billion euros, said three sources, on condition of anonymity.
TDF – a former unit of the leading French telecommunications operator Orange ORAN.PA – provides strategic broadcasting and telecommunications infrastructure throughout France, with its radio antennas located at the top of the Eiffel Tower in Paris.
Brookfield’s decision to pull out of TDF comes amid frenzied investment in Europe’s transmission tower companies, with major operators including Deutsche Telekom DTEGn.DE and Vodafone VOD.L currently in talks with investment funds. investment to sell all or part of their infrastructure gems.
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Brookfield and Credit Suisse declined to comment, while TDF and Citi were not immediately available for comment.
Brookfield is seeking to act quickly after previous talks to sell all or part of its stake in TDF fell through, the sources say.
The Canadian investment firm led an investment consortium that took control of TDF in 2015 and currently ranks as the company’s largest shareholder with a 45% stake.
Brookfield is looking to launch a sale process before the summer, targeting high-net-worth infrastructure investors looking to deploy capital in major European markets, the sources said.
(Report Pamela Barbaglia and Andres Gonzalez, French version Augustin Turpin, edited by Sophie Louet)