Telus announced Thursday it has closed a deal that will see the country’s second-largest pension fund purchase a 49.9-per-cent equity stake in Terrion LP, a company with a portfolio of nearly 3,000 Telus wireless towers.
The deal with La Caisse for $1.26 billion, announced last month, means the telco will be able to reduce its net debt by that amount, which was the intended outcome. The transaction values Terrion at $2.5 billion.
The new company will manage the tower sites across British Columbia, Alberta, Ontario and Quebec and will generate money through wholesale rental. Telus will retain full ownership and control of the network component and security systems.
“This unique partnership not only supports national wireless competition through wholesale access, but also unlocks significant value for TELUS shareholders by strengthening our balance sheet and accelerating our deleveraging program,” Telus President and CEO Darren Entwistle said in a press release.
La Caisse has experience with infrastructure deals like this. Emmanuel Jaclot, the pension fund’s executive vice president and head of infrastructure and sustainability, said in the release that the goal is to expand Terrion’s asset base through the construction and acquisition of new towers, while bringing on mobile wireless tenants to improve connectivity in the country.
“Terrion’s objectives are clear: to foster a more efficient and collaborative wireless ecosystem that unlocks value for Canadians and Canadian operators,” added Spadotto. “Working closely with municipalities, developers and suppliers, we are enabling smarter urban planning and accelerating wireless service delivery across communities to help catalyze the digital economy, support the deployment of world-leading technology and offer the best possible wireless experience today and for years to come.”
Telus had previously announced that it was looking to leverage its assets to raise money and pay down debt, following a similar announcement by Rogers.
