Corporate Governance

Cellnex: A Growth Project

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This case presents the challenges that Cellnex was facing in 2015, with its large investments in telecommunication sites and its potential IPO. Cellnex is a business unit of Abertis with specialized technological competencies in three areas: broadcasting, including transportation and distribution of radio and TV signals; infrastructure service management for wireless voice and data transmission; and other services related to signal transmission for security and emergency services, the Internet of things (IoT) and smart city applications. In 2015, there was a lack of unanimity regarding some of the strategic questions for the company. Some considerations, such as the comprehensive service model for clients, were seen as good value propositions, but the company was still far from being able to offer that model. By contrast, Cellnex had great technical competence in broadcasting, which is where the company's added value was located, and which it hoped to extend into the operation of voice and data infrastructure. There were also doubts about the pace needed to acquire other companies outside Spain and Italy. The case asks what the priorities of Cellnex's Management Committee and Board of Directors should be. What criteria and restrictions should there be for potential decisions? How can they instill the entire company with the new culture that Cellnex needs to adopt as an international company with high growth listed on the stock market?
Bibliographic citation: Canals, Jordi, "Cellnex: A Growth Project", IESE, SM-1662-E, 12/2018
Date: 14/12/2018
Author(s): Canals, Jordi
Document type: Case
Department: Strategic Management
Languages: Spanish / English
Year of the events: 2014-2015

Learning objective Strategy in new business corporate strategy corporate governance and board design