Virgin Media O2 is to sell a 16.67% minority stake in its mobile tower joint venture, Cornerstone Telecommunications Infrastructure Limited to the UK-based infrastructure fund, GLIL Infrastructure LLP.
Virgin Media O2 will receive approximately £360 million for the share. The sale has been structured through a holding company that owns 50% of the shares, HoldCo, through which Virgin will continue the joint control of Cornerstone, alongside its partner Vantage Towers.
In a statement, Lutz Schüler, CEO of Virgin Media O2, said the sale was a logical move: “This deal aligns perfectly with our core infrastructure and capital allocation strategy which sees Virgin Media O2 continue to invest in the UK to expand and upgrade our next generation fixed and mobile footprints
Cornerstone is the UK’s largest mobile towers business, consisting of a nationwide network used by both Virgin Media O2 and Vodafone UK as anchor tenants. It has the highest density of network in the UK, owning and managing an estate of around 20,000 sites spread across both urban and rural locations.
GLIL invests on behalf of Local Government Pension Scheme DB funds and pools including Local Pensions Partnership Investments, Greater Manchester Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund, as well as Nest, the government-established DC workplace pension provider.
