Virgin Media O2 (VMO2) continued to lower its stake in mobile tower joint venture Cornerstone Telecommunications Infrastructure, agreeing to sell an 8.3 per cent minority stake for around £186 million.
The UK-based operator stated it struck a deal to sell the stake to funds managed by Equitix Investment Management. The transaction involves VMO2 selling a 16.6 per cent stake in a holding company which indirectly owns 50 per cent of Cornerstone.
In November 2023, VMO2 agreed to sell almost a 16.7 per cent share in the tower business to a partnership of local pension funds, raising £360 million.
The latest sale is subject to certain conditions but, if it completes, VMO2 will be left with a 25 per cent holding in Cornerstone.
VMO2 stated Cornerstone is the UK’s largest mobile tower business, owning and managing around 20,000 sites which are also used by Vodafone UK.
Equitix is a mid-market infrastructure investor, with more than £11 billion of equity invested across more than 350 assets. The Cornerstone deal would increase its portfolio to more than 23,000 towers located across the UK, Europe and Middle East.
VMO2 CEO Lutz Schuler said the additional minority stake sale follows the same logic and strategic rationale as its previous deal, “allowing us to successfully monetise our infrastructure while retaining a controlling share in an important asset”.
Details of the sale came as VMO2’s joint parent Liberty Global issued Q3 numbers showing the operator’s revenue was flat at £2.7 billion year-on-year.
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