Manulife Investment Management eyes Cellnex Swiss business, Reuters’ sources say

Signage is seen on Manulife Financial Corp.'s office tower in Toronto. THE CANADIAN PRESS/Cole Burston

Spain’s Cellnex is in talks to sell its stake in its Swiss ​unit to Toronto-listed Manulife Financial Corporation’s investment management ‌unit, according to two sources with knowledge of the situation.

Manulife has been working with financial advisors on a possible deal, one of the ​sources said. The talks follow an attempt to ​sell the Swiss operations last year, which CEO Marco Patuano told ⁠Reuters last month were halted due to bids falling below expectations.

Cellnex ​owns a 72 per cent stake in its Swiss unit, with the ​remaining 28 per cent held by Swiss Life Asset Managers. Analysts at JPMorgan have valued the whole Swiss unit at around 2 billion euros (US$2.34 billion).

The sources, who ​requested anonymity as the matter is confidential, cautioned a deal ​may not happen. Reuters could not determine whether Cellnex was holding talks ‌with ⁠other bidders or whether Swiss Life also will sell its stake.

Cellnex and Manulife declined to comment. Swiss Life Asset Managers did not immediately reply to request for comments.

Following years of growing ​through acquisitions, rising ​interest rates ⁠had forced Cellnex to focus on selling assets to reduce debt. More recently Patuano said that ​the necessary asset sales had been completed.

Last year ​Global ⁠Communications Infrastructure, which is backed by Manulife Investment Management, acquired a 50% stake in Sweden’s Tele2 telecom infrastructure assets marking GCI’s ⁠entrance ​into the European market.

Reporting ​by Amy-Jo Crowley and Andres Gonzalez in London. Additional reporting by Elvira Pollina ​and Nivedita Balu. Editing by Anousha Sakoui and Karin Strohecker