UK's Virgin Media O2 sells $437 million mobile-towers stake to GLIL

Published 31/10/2023, 17:52
© Reuters.
VOD
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By Paul Sandle

LONDON (Reuters) -Britain's Virgin Media O2 on Tuesday said it had sold a 16.67% stake in its mobile towers joint venture Cornerstone to GLIL Infrastructure, a partnership of UK pension funds, for about 360 million pounds ($437 million) in cash.

VM O2, jointly owned by Telefonica (BME:TEF) and Liberty Global (NASDAQ:LBTYA), said the value represented a multiple of 18.7x of Cornerstone's adjusted core earnings for the year ended in March 2023.

The mobile and broadband company will retain a 33.33% stake in Cornerstone, Britain's largest tower sharing company, which is half owned by Vodafone (LON:VOD) via its Vantage Towers subsidiary.

The sale confirmed a Reuters report on Saturday.

VM O2's Chief Executive Lutz Schüler said selling a minority stake in Cornerstone was a logical move that partly monetised its towers infrastructure, while retaining operational and strategic co-control.

GLIL investment director Simon Davy said stake fitted well into its existing portfolio of high quality, core infrastructure assets.

VM O2 will publish third-quarter results on Wednesday.

($1 = 0.8234 pounds)

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