Telus, a prominent Canadian telecom operator, is contemplating the sale of a minority stake in its wireless tower portfolio. This potential sale is part of a strategic effort to enhance its financial standing. CEO Darren Entwistle emphasized the importance of meeting Telus’ economic parameters while exploring avenues to monetize these infrastructure assets.
The company remains tight-lipped on specific details, but reports suggest Telus might divest up to 49.9% of its 3,000 towers. This could potentially raise over CAD 1 billion, which translates to roughly $700 million. The process appears to involve discussions with private equity entities, pension funds, and international telecom infrastructure stakeholders.
Entwistle assures that the entirety of the raised funds would be earmarked for debt reduction. Coinciding with this initiative, CFO Doug French highlighted the goal of achieving a net debt-to-EBITDA ratio of 3x by 2027. The move also aims to phase out Telus’ discounted dividend reinvestment program, with French noting, “This represents a distinct opportunity to create significant value for our stakeholders, including our customers, investors, and Canadians coast to coast.”
This potential sale reflects a broader telecom industry pattern, where operators are leveraging asset sales to manage debt and fuel growth opportunities. Notably, in September 2024, Verizon brokered a transaction with Vertical Bridge, worth $3.3 billion, to lease operational rights of over 6,300 towers while retaining ownership. Similarly, the American Tower Corporation divested its Indian operations involving 76,000 towers to Data Infrastructure Trust for about $2.5 billion.
