Telus Corp has formally put a stake in its nationwide mobile tower network up for sale, with an estimated value exceeding $1 billion (US$700 million). The company has hired TD Securities to market a 49.9% stake in its 3,000-tower portfolio to institutional investors and tower owners, according to sources familiar with the process, originally reported by The Globe and Mail. The sale is part of a broader trend among Canada’s three largest telecom operators to raise cash amid significant debt burdens and ambitious growth strategies.
The auction, codenamed “Project Air,” was initiated in February. A pitch book was circulated to potential buyers, detailing the financial performance of the division, which reportedly generated $160 million (US$112 million) in revenue and $110 million (US$77 million) in cash flow last year. TD Securities is targeting private equity funds, pension plans, and international tower operators for potential bids.
Telus CFO Doug French stated that the company has been evaluating interest in its "redundant" assets for several months and has seen substantial global interest. Although no deadline for bids was provided, the process is reportedly well underway. French added that Telus would only proceed with a sale if it secures a price near the top end of the $1 billion to $1.5 billion (US$700 million to US$1.05 billion) valuation range suggested by analysts. CIBC analyst Stephanie Price and Bank of Nova Scotia analyst Maher Yaghi estimated the value of the tower portfolio to range between $1 billion and $3 billion (US$700 million and US$2.1 billion).
Major tower deals in North America have become rare as few portfolios remain up for sale. In September Verizon sold 6,339 to Vertical Bridge for US$3.3 billion, or about half a million US dollars per tower. The range for Telus offered by analysts is similar, but market dynamics in Canada are very different to the United States.
The sale comes as Telus faces significant debt pressures, currently at about $29 billion (US$20.3 billion). The company has outlined various measures to reduce leverage, including raising $500 million (US$350 million) from selling copper networks replaced with fibre and up to $3 billion (US$2.1 billion) from real estate divestitures. French indicated that the proceeds from the tower sale would be directed exclusively toward debt reduction.
While Telus is moving forward with the sale, other Canadian telecom giants, including BCE Inc. and Rogers Communications Inc., have no current plans to sell their tower networks but are closely monitoring the process. Industry experts suggest that the move aligns Canadian operators with global peers who have been selling their tower assets for decades. In the U.S., for example, telecom operators own just 3% of their towers compared to 95% in Canada.
The sale of Telus’ towers reflects a strategic shift in the telecom sector as operators look to monetise assets amid challenging financial conditions. The process will be watched closely by the industry, as other operators may follow suit depending on the success of the sale.
