TELUS sells 49.9% stake in Terrion for CAD $1.26 billion
TELUS has completed the sale of a 49.9% equity stake in Terrion to La Caisse, valuing the wireless tower operator at more than CAD $2.5 billion.
The transaction sees La Caisse acquire a significant interest in both Terrion LP and its general partner Terrion GP Inc. for approximately CAD $1.26 billion. This arrangement establishes Terrion as the largest dedicated wireless tower operator in Canada, with a portfolio comprising 3,000 sites across the country.
Following the transaction, TELUS retains majority ownership of Terrion and will use the proceeds to pay down debt, shrinking its net debt by CAD $1.26 billion. According to TELUS, the reduction equates to a decrease of about 0.17 times the company's current net debt-to-EBITDA ratio, supporting its broader objective of accelerated deleveraging and sustainable growth.
La Caisse, as one of Canada's largest institutional investors, brings additional capital and sector experience to Terrion's operations. The investor's focus on expanding Terrion's network footprint through both organic and acquisition-led growth is expected to introduce further competition within the wireless infrastructure space. The transfer of a significant minority stake and board-level collaboration between TELUS and La Caisse is regarded as reinforcing Terrion's long-term role within Canada's telecommunications landscape.
Industry growth
Darren Entwistle, President and Chief Executive Officer of TELUS, emphasised what he views as the significance of the deal, both for the company and the broader sector.
"With 3,000 sites across the country and growing, Terrion is Canada's largest dedicated wireless tower operator. This unique partnership not only supports national wireless competition through wholesale access, but also unlocks significant value for TELUS shareholders by strengthening our balance sheet and accelerating our deleveraging program," said Darren Entwistle, President and CEO of TELUS.
TELUS stated the partnership enables a more robust tower access and co-location platform, supporting wireless competition across Canada. The emphasis is on opening up access to wireless infrastructure for new and existing mobile network operators, thereby aiming to boost coverage and capacity throughout the nation.
Eros Spadotto, Chief Executive Officer of Terrion, said the company intends to work in partnership with municipalities, developers, and suppliers to focus on improved urban planning and service delivery, positioning itself in support of national technological advancements and the expansion of Canada's digital economy.
The agreement comes during a period of ongoing investment in digital and wireless infrastructure throughout Canada. The rapid proliferation of wireless devices, increased use of cloud technologies, and demand for ubiquitous connectivity drives both the need for upgraded infrastructure and cross-industry cooperation.
While TELUS expects to realise substantial benefits from the transaction, including an improved capital structure and competitive positioning, the company acknowledged that anticipated advantages remain subject to various business risks. The transaction is designed to accelerate investment in infrastructure and provide a platform for further growth, but TELUS notes that actual results may differ from current expectations.
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