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Virgin Media O2 is on the verge of a significant development as it enters exclusive negotiations to divest a portion of its ownership in the United Kingdom’s largest mobile tower network. According to four insider sources, this deal with GLIL Infrastructure could potentially value the business at approximately £2.5 billion ($3.03 billion).
GLIL Infrastructure, a partnership of British pension funds, emerged victorious in a competitive auction organized by Virgin Media O2’s parent companies, Liberty Global and Telefonica, earlier this year. This auction pertained to part of their collective 50% stake in the tower company, known as Cornerstone.
If negotiations proceed smoothly, there is a possibility of announcing a deal for a minority stake, which would be less than 25%, as early as the coming week, as confirmed by two of the sources. Nevertheless, it is important to note that there remains a chance that no agreement will be reached. Due to the confidential nature of the matter, the sources have requested to remain anonymous.
Telefonica and Liberty Global have been collaborating with advisors on the sale of up to half of their combined 50% stake in Cornerstone, reflecting their strategic repositioning within the telecommunications sector.
It is worth mentioning that the remaining portion of the business is owned by Vodafone through its subsidiary, Vantage Towers, based in Frankfurt.
Official spokespersons for Telefonica, Liberty Global, Virgin Media O2, and GLIL have opted not to provide comments on this matter at this time.
Cornerstone, established in 2012, has become Britain’s most prominent tower company, responsible for the management of over 20,000 sites, as detailed on the company’s website.
In recent years, there has been growing interest from infrastructure and private equity investors in acquiring stakes in significant tower deals. This includes transactions like Deutsche Telekom’s sale of a majority stake in GD Towers. The appeal of such deals lies in the stability of cash yield and the security of long-term contracts within the telecommunications infrastructure sector.
