Information on the Target

Connectis Tower is a newly established independent tower platform that emerged from the acquisition of a carved-out tower portfolio from Telekom Srbija. This portfolio consists of approximately 1,800 macro towers located across Serbia, Bosnia & Herzegovina, and Montenegro. The company plans to expand its tower portfolio starting in 2024, with approximately 1,000 towers situated in Serbia, 700 in Bosnia & Herzegovina, and 100 in Montenegro.

Industry Overview in the Target’s Specific Country

The telecommunications industry in the Balkans is poised for growth, spurred by increasing demand for mobile connectivity and digital services. Operators in the region are looking to enhance their service offerings, particularly as 5G technology deployment gains momentum. Independent tower companies like Connectis Tower provide crucial infrastructure that allows network operators to focus on service delivery rather than managing their own tower assets.

In recent years, there has been a marked trend towards the consolidation of telecommunications infrastructure, resulting in the emergence of independent tower companies that serve multiple operators. This model not only ensures cost efficiency but also accelerates the deployment of necessary technology, fostering improved connectivity across urban and rural areas.

Furthermore, as countries in the Balkans push for digital inclusivity, independent tower companies play a pivotal role in supporting rural connectivity initiatives. This aligns with broader economic goals aimed at enhancing local development and ensuring that underserved populations have access to essential digital services.

The Rationale Behind the Deal

The acquisition of the tower portfolio from Telekom Srbija allows Connectis Tower to capitalize on the growing telecommunications market in the Balkans. By establishing itself as an independent operator, Connectis Tower can provide optimized infrastructure solutions tailored to the needs of network operators. This strategic positioning enables the company to support the rapid rollout of advanced network technologies while minimizing operational costs.

Moreover, the launch of Connectis Tower aligns with the increasing emphasis on sustainability and operational efficiency within the telecommunications sector. By leveraging shared resources, the platform can contribute to a greener approach in network expansion, promoting responsible environmental practices.

Information About the Investor

Actis is a prominent global investor specializing in sustainable infrastructure investments. With a strong track record of supporting growth in emerging markets, Actis brings extensive experience to Connectis Tower. The investor's focus on sustainable practices aligns with the operational ethos of Connectis Tower, reinforcing its commitment to fostering a more inclusive and connected economy in the Balkans.

With a dedicated team led by experienced professionals, Actis is well-positioned to guide Connectis Tower's strategic direction, ensuring the platform exploits growth opportunities within the telecommunications sector while adhering to principles of sustainability and responsible investment.

View of Dealert

From an expert perspective, the launch of Connectis Tower represents a promising investment opportunity in the telecommunications sector. The strategic acquisition from Telekom Srbija positions the company well in a rapidly evolving market. As demand for connectivity increases, particularly with the advent of 5G technology, Connectis Tower is likely to see significant growth as it serves multiple network operators.

The experience and leadership skills of CEO Bogdan Djukic and CFO Jovana Nikolic further enhance the company’s potential for success. Their backgrounds in infrastructure and financial leadership equip them to navigate the complexities of the telecommunications landscape effectively.

Moreover, the operational model of shared infrastructure promoted by Connectis Tower not only reduces costs but also facilitates quicker technology deployment. Such a setup is advantageous in a region where digital connectivity is essential for economic development and enhances service quality across operator networks.

Overall, Connectis Tower's establishment as an independent operator amidst an expanding telecommunications market underscores its potential for sustainable growth, making it a solid investment consideration moving forward.

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