Deutsche Telekom (DT) has announced the sale of a 51% stake in its tower business GD Towers to US infrastructure investment company Digital Bridge and Canadian asset management firm Brookfield. The transaction has an enterprise value of EUR17.5 billion (USD17.5 billion) on a cash and debt free basis. GD Towers operates more than 40,000 sites in Germany and Austria and has a successful track record in delivering new sites for its anchor tenant Telekom Deutschland and securing revenues with third party customers. Telekom Deutschland and Magenta Telekom in Austria will continue to enjoy unconstrained access to the passive mobile infrastructure of GD Towers via favourable long-term (around 30 years) lease agreements. Both Telekom Deutschland and Magenta Austria have secured reciprocal contractual commitments from GD Towers for around 5,400 new sites through to 2026 and prioritised capacity for RAN modernisation through to 2028. The transaction is subject to usual regulatory approvals; closing is expected towards end of 2022.
‘Deutsche Telekom once again delivers on its strategic agenda. We crystalise the value of our tower assets, thereby creating value for our shareholders,’ said Tim Hottges, CEO of DT, adding: ‘At the same time the deal allows us to continue improving Deutsche Telekom’s undisputed network leadership in Germany and benefit from further value upside of the towers business through our retained 49% stake.’