BARCELONA: Spanish mobile phone mast operator Cellnex said on Wednesday it would increase its capital by up to 7 billion euros ($8.42 billion) to fund the acquisition of French telecoms tower company Hivory, significantly expanding its presence in France.

Since its listing in 2015, the Barcelona-based firm - which currently has a market capitalisation of 23.9 billion euros - has grown rapidly, buying up assets which have retained their appeal for investors despite the coronavirus crisis, thanks to their steady cash flows.

Cellnex told Spanish stock regulator it had reached an agreement with Altice and Starlight Holdco to acquire Hivory, which has around 10,500 masts in France, planning an initial investment of 5.2 billion euros.

The company said it expects the operation to increase its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) by around 460 million euros.

Cellnex shares were down 2.6% to 47,87 euros after the announcement.