Virgin Media O2 has announced an agreement to sell an 8.33 percent minority stake in its mobile tower joint venture, Cornerstone Telecommunications Infrastructure Limited (Cornerstone), to funds managed by Equitix Investment Management Limited (Equitix), while retaining a 25.01 percent holding in Cornerstone overall. This transaction builds on a previous minority stake sale in November 2023.
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Financial Details and Stake Structure
Through this deal, Virgin Media O2 will receive GBP 186 million in cash upon completion for selling a 16.66 percent stake in a holding company that indirectly owns 50 percent of Cornerstone, while maintaining proportional control in the joint operation.
Cornerstone and Equitix
According to the official release, Cornerstone, the UK's largest mobile tower business established in 2012, manages around 20,000 sites used by Virgin Media O2 and Vodafone UK, covering approximately 60 percent of UK mobile subscribers. Established in 2007, Equitix is the UK's largest mid-market infrastructure investor, managing over GBP 11 billion in equity with a focus on critical infrastructure.
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Equitix’s Investment Strategy
This investment aligns with Equitix's goal of expanding its digital infrastructure portfolio, meeting demand for high-speed data and communication services, and supporting the UK's telecommunications sector, the joint statement said. The addition of this investment will increase Equitix's portfolio to over 23,000 towers located across the UK, Europe and the Middle East.
Virgin Media O2 and Equitix
"This additional minority stake sale follows the same logic and strategic rationale as our previous deal, allowing us to successfully monetise our infrastructure while retaining a controlling share in an important asset," said Virgin Media O2. "Equitix is another strong partner to have onboard that clearly sees the long-term value in Cornerstone at a time when we are investing billions of pounds to enhance 4G coverage and bring 5G to new areas of the country."
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"As the UK's largest telecom tower portfolio, Cornerstone provides infrastructure services that are vital for nationwide connectivity. This investment demonstrates our continued commitment to invest in critical national infrastructure which is central to our mandate to invest in core infrastructure," Equitix added.
Completion of the transaction is subject to the finalisation of certain conditions.
