Telus is selling a stake in its wireless towers worth potentially $1.2 billion
Telus is following in Rogers’ footsteps with a potential sale of its wireless infrastructure. The Vancouver-based national carrier is reportedly looking to sell a stake in its cellphone tower network.
Per the Globe and Mail, there are three Canadian asset managers in talks to buy a 49 per cent stake in Telus’ 3,000 tower network to the tune of $1.2 billion. The Globe cited unnamed sources not permitted to speak publicly about the transaction, noting that talks are ongoing and there’s no certainty around a final deal.
The three asset managers include pension funds like the Ontario Municipal Employees Retirement System (OMERS) and British Columbia Investment Management Corp. (BCI). The third asset manager involved is Toronto-based Brookfield.
Telus reportedly plans to turn the minority tower stake into a new company called Terrion. The sale is being made to reduce debt. The company aims to close the transaction by the end of the year.
Telus’ tower sale is the latest move in a growing trend of Canadian carriers selling infrastructure. As mentioned up top, Rogers also sold a minority stake in its wireless backhaul to funds managed by U.S. investment management company Blackstone for $7 billion.
We’ve also seen Bell expand into the U.S. with recent fibre acquisitions as it slows fibre investments at home in protest of the CRTC’s fibre wholesale program.
Source: Globe and Mail
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