GLIL Infrastructure is investing around £360m (€416m) for a minority stake in Cornerstone Telecommunications Infrastructure, the UK’s largest mobile towers business.
Virgin Media O2 said it had agreed to sell a 16.67% minority stake in its mobile tower joint venture Cornerstone to the UK-based infrastructure fund.
The deal involves a Virgin Media O2 holding company, which owns 50% of the Cornerstone shares, selling a one-third stake in the holding company to GLIL, the fund backed by a number of UK local government pension schemes.
Virgin Media O2 will remain a two-thirds shareholder in the holding company and will continue to be a co-controlling shareholder in Cornerstone, together with Vantage Towers.
Cornerstone was established in 2012 as a mobile network joint venture between Telefónica UK (now Virgin Media O2) and Vodafone UK. Vodafone transferred its 50% stake to Vantage Towers in 2021, with Virgin Media O2 retaining its 50% share prior to the latest stake sale to GLIL.
Cornerstone’s business 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.
Simon Davy, investment director at GLIL, said: “GLIL is delighted to be partnering with Virgin Media O2, providing local capital to support the delivery of critical mobile infrastructure.
“We are attracted by Cornerstone’s position as the owner of the UK’s largest tower portfolio, which fits well within GLIL’s existing portfolio of high quality, core infrastructure assets.”
Lutz Schüler, CEO of Virgin Media O2, said: “Selling a minority stake in Cornerstone is a logical move for us. We are partially monetising our tower infrastructure while retaining operational and strategic co-control in a key asset as we roll out 5G to more of the country and boost 4G connectivity.
“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. As a trusted UK-centric investor, GLIL is the best long-term partner for Virgin Media O2 at Cornerstone.”
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