DigitalBridge agreed to acquire the mobile telecommunications tower business of Telenet Group for €745 million in cash (US$820 million).
The deal will provide DigitalBridge with ownership of 100% of Telenet’s passive infrastructure and tower assets, including TowerCo’s nationwide footprint of 3,322 sites in Belgium, including 2,158 owned sites and 1,164 third-party sites.
The business boasts a total tenancy ratio of 1.2x, and a tenancy ratio of 1.6x in towers. The transaction creates the foundation for DigitalBridge to benefit from Telenet’s increased participation in 5G deployment to meet growing coverage needs as underscored by robust market and macroeconomic trends in the telecom.
Telenet also agreed to a lease-back arrangement with DigitalBridge, with an initial period of 15 years and two renewals of 10 years each. The agreement also includes a build-to-suit commitment to deploy a minimum of 475 additional new sites.
Marc Ganzi, President and CEO of DigitalBridge, said, “Telenet’s tower business is a high-quality digital infrastructure asset with stable, predictable cashflows, high cash conversion, and long-term contracts. This transaction is the latest example of DigitalBridge’s commitment to working with leading telecom and technology companies globally to help them unlock embedded value in their networks via creative solutions built on long-standing relationships and a proven track record of successfully operating assets. We see significant headroom for growth in the Belgian telecom market through the enhancement of mobile penetration and data usage, and we look forward to meeting and exceeding Telenet’s increased coverage needs.”
