VMO2 has announced that it is continuing to monetise its stake in UK towerco Cornerstone. The deal will see VMO2’s shareholding drop to 25.01%. Completion of the transaction is subject to the finalisation of certain conditions. The news comes after Liberty Global, VMO2’s UK operating company, sold a stake in Cornerstone to another UK-based infrastructure fund, GLIL Infrastructure, as revealed in October 2023 by the company.
The Equitix transaction will be on the same equivalent terms as with the stake sale to GLIL Infrastructure. The transaction will see Virgin Media O2 sell a 16.66% stake in a holding company that indirectly owns 50% of Cornerstone. It will pocket £186mn (US$241mn) in cash upon completion along equivalent terms to the previous stake sale.
Cornerstone is a joint venture between VMO2 and Vodafone. In early 2021, Vodafone and Telefónica announced the commercialisation of Cornerstone, entering into long term MSAs with Cornerstone (with Cornerstone becoming the preferred supplier of new sites for the two operators). Vodafone transferred its 50% interest in Cornerstone to its towerco, Vantage Towers.
Today, Cornerstone owns and manages a nationwide network of around 20,000 sites used by VMO2 and Vodafone to provide critical services for approximately 60% of UK mobile subscribers.
Equitix’s investment enhances its site portfolio internationally, with 23,000 towers now at the hands of the company across the UK, Europe and the Middle East.
Achal Bhuwania, CIO, Equitix said: “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.”
Lutz Schüler, CEO of Virgin Media O2 said: “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.
“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,” Schüler concluded.
