Virgin Media O2 has taken a step to further reduce its involvement in the UK’s mobile tower sector. The company recently confirmed the sale of an 8.33% stake in Cornerstone, a prominent tower operator, to infrastructure investor Equitix. This transaction, facilitated by selling a 16.6% stake in a holding company, will bring VMO2 £186 million. However, regulatory approvals are still pending.
Cornerstone, established in 2012 as a joint venture between Telefonica (O2) and Vodafone, represents the largest tower company in the UK with around 15,700 to 20,000 sites. Its market share is approximately 35%. This sale follows a pattern for Virgin Media, which has been methodically decreasing its Cornerstone holdings, having previously sold a 16.7% stake to GLIL Infrastructure for £360 million last year. After this recent sale, VMO2 will retain a 25.01% stake.
The strategic rationale behind these sales lies in maximizing financial returns from infrastructure investments while still maintaining a significant share in valuable assets. Lutz Schüler, VMO2 CEO, remarked, “This additional minority stake sale follows the same logic and strategic rationale as our previous deal, allowing us to successfully monetize our infrastructure while retaining a controlling share in an important asset.” Equitix, the new stakeholder, is expected to be a robust partner focusing on Cornerstone’s long-term prospects as VMO2 prioritizes 4G and 5G enhancements.
This announcement coincides with VMO2’s Q3 financial results, which reflect a 2.4% revenue dip attributed to declining UK handset sales. The company’s EBITDA dipped by 4.1% compared to the previous year.
