Virgin Media O2 has announced the sale of a 16.67 percent minority stake in its mobile tower joint venture, Cornerstone, to the UK-based infrastructure fund GLIL Infrastructure. The deal is valued at approximately GBP 360 million, payable in cash upon the completion of the transaction.
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5G Expansion
According to the statement, Virgin Media O2 will retain a 33.33 percent stake in Cornerstone after the sale. This move allows Virgin Media O2 to partially monetize its tower infrastructure while retaining operational and strategic control over a key asset. The company is focused on expanding 5G coverage across the country and improving 4G connectivity.
Transaction Details
The transaction is structured through a holding company, HoldCo, owned by Virgin Media O2. After the deal, GLIL will hold a 33.3 percent stake in the holding company, with Virgin Media O2 retaining the remaining 66.7 percent. As the majority shareholder of the holding company, Virgin Media O2 states that it will continue to co-control Cornerstone in partnership with Vantage Towers.
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Network Sharing
According to the statement, Cornerstone is the UK's largest mobile tower business, owning and managing approximately 20,000 sites spanning urban and rural locations. It plays a critical role in providing network services to both Virgin Media O2 and Vodafone UK, serving as anchor tenants. Additionally, this sale will not affect their existing network-sharing agreement, referred to as Project Beacon, which involves the two companies sharing radio equipment in specific areas of the country.
Infrastructure Investment
With over GBP 3.6 billion in committed capital, GLIL is a partnership of UK pension funds that specializes in infrastructure investments. The transaction is expected to be completed in the coming weeks, representing a significant step for Virgin Media O2 as they continue to expand and upgrade their next-generation fixed and mobile networks throughout the UK.
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Cornerstone
Cornerstone was established in 2012 as a mobile network joint venture between Telefonica UK (now Virgin Media O2) and Vodafone UK. In 2021, Vodafone transferred its 50 percent stake to Vantage Towers. Virgin Media O2 retained its 50 percent share prior to the partial indirect stake sale to GLIL, as noted in the official statement with this announcement.
