The Télus telecommunications giant announced on Friday the creation of Terrion, a new entity responsible for managing its cellular towers in which the fund will invest nearly $ 1.3 billion.
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The Quebec institution thus obtained a participation of 49.9% in Terrion.
Established in Montreal, Terrion will hold some 3000 transmission sites in Canada, distributed in four provinces: Quebec, Ontario, British Columbia and Alberta. Telus will keep a majority participation of 50.1% in the joint venture and will continue to use these towers thanks to a renewable rental agreement of eight years.
“With this investment, we associate ourselves with Telus to create the most important operator of specialized wireless towers in Canada. This is an important step in strengthening digital connectivity and resilience of the country’s mobile networks, “said Emmanuel Jaclot, head of the cash infrastructure.
Less debt
This transaction establishes the value of Terrion at more than $ 2.5 billion. It allows Telus to reduce its debt level by $ 1.26 billion while maintaining the complete control of its active systems (networks, security, antennas). Throughout the world, more and more telecommunications companies are swapping their networks to separate them from their current activities.
Terrion will offer roommate services to other wireless suppliers, thus promoting better coverage and greater competition. “This partnership transforms the situation, supports our deleveraging, while strengthening the country’s digital infrastructure,” said Darren Entwistle, CEO of Telus.
The cash register is not at its first shine in the sector. She is already a shareholder of companies similar to the United States (Vertical Bridge), Europe (American Tower) and New Zealand (Connected).
Rogers also
In April, the fund participated in an investment of $ 7 billion in Rogers Communications. This transaction, carried out alongside the American investment firm Blackstone and other Canadian institutional investors, aimed to strengthen the financial structure of the Toronto company and reduce its debt ratio.
Led by Eros “Woody” Spadotto, a veteran of Telus, Terrion will offer installations ready to accommodate several tenants, adapted to the future needs of cities as regions. The objective: to build an efficient, sustainable digital backbone open to all market players.
The transaction, subject to the approval of the regulatory authorities, is expected to be finalized by the end of 2025.
