Virgin Media O2 has agreed to sell an 8.33 per cent minority stake in mobile tower joint venture Cornerstone Telecommunications Infrastructure to funds managed by Equitix Investment Management.
This follows on from a previous minority stake sale in Cornerstone by Virgin Media O2 completed in November 2023.
The deal will result in Virgin Media O2 selling a 16.66 per cent stake in a holding company that indirectly owns 50 per cent of Cornerstone, receiving £186 million in cash upon completion along equivalent terms to the previous stake sale. Under the ownership structure, Virgin Media O2 will continue to proportionately consolidate Cornerstone as a joint operation.
Cornerstone was established in 2012 and, with two market-leading anchor tenants, it owns and manages a nationwide network of around 20,000 sites used by Virgin Media O2 and Vodafone UK, providing critical services for approximately 60 per cent of UK mobile subscribers. Established in 2007, Equitix is a mid-market infrastructure investor with more than £11 billion of equity invested across 350-plus assets.
This strategic investment underscores Equitix’s commitment to expanding its digital infrastructure portfolio and supporting the UK’s telecommunications sector, meeting the growing demand for high-speed data and communication services. The addition of this investment will increase Equitix’s portfolio to more than 23,000 towers across the UK, Europe and the Middle East.
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.”
Achal Bhuwania, CIO of Equitix, said, “We are delighted with our investment in Cornerstone and building a partnership with Virgin Media O2. 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.”Completion of the transaction is subject to the finalisation of certain conditions.