Virgin Media O2 (VMO2) has announced that it will sell an 8.33% minority stake in its mobile tower joint venture, Cornerstone Telecommunications Infrastructure Limited (Cornerstone), to funds managed by Equitix Investment Management Limited.
The sale follows a previous transaction in November 2023, where Virgin Media O2 also divested a minority stake in Cornerstone.
As part of the current transaction, Virgin Media O2 will sell a 16.66% stake in a holding company that indirectly owns 50% of Cornerstone, resulting in a cash inflow of GBP 186 million upon completion. The terms are consistent with the earlier stake sale. Virgin Media O2 will continue to consolidate Cornerstone as a joint operation in line with its ownership structure.
Cornerstone, established in 2012, has around 20,000 sites supporting Virgin Media O2 and Vodafone UK. It serves about 60% of UK mobile subscribers. Equitix manages over GBP 11 billion across 350+ assets. This investment reflects Equitix’s commitment to enhancing its digital infrastructure portfolio and supporting the UK telecommunications sector, bringing its total to over 23,000 towers across the UK, Europe, and the Middle East.
Past Proposition: Virgin Media O2 to Offload Further Stake in Cornerstone Tower Venture
Completion of the transaction is contingent upon meeting certain conditions.
Lutz Schüler, CEO of Virgin Media O2, indicated that the recent minority stake sale aligns with the strategic rationale of their previous deal, enabling the company to monetize its infrastructure while maintaining a controlling share in Cornerstone.
He emphasized that Equitix is a strong partner that recognizes the long-term value of Cornerstone, especially as Virgin Media O2 invests significantly to improve 4G coverage and expand 5G services across the UK.
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.”