Virgin Media O2 sells additional stake in Cornerstone to Equitix

• Virgin Media O2 has agreed to sell an 8.33% minority stake in the Cornerstone mobile towers JV to Equitix, while retaining a 25.01% holding in Cornerstone overall
• The deal, which will see Virgin Media O2 receive £186m in cash upon completion, is structured through a 16.66% sale in a holding company which indirectly owns 50% of Cornerstone
• The deal follows on from and is on equivalent terms to the previous minority stake sale in November 2023

30 October 2024: Virgin Media O2 has today announced an agreement to sell an 8.33% minority stake in mobile tower joint venture Cornerstone Telecommunications Infrastructure Limited (“Cornerstone”), to funds managed by Equitix Investment Management Limited (“Equitix”). This follows on from a previous minority stake sale in Cornerstone by Virgin Media O2 completed in November 2023.

The transaction will see Virgin Media O2 sell a 16.66% stake in a holding company that indirectly owns 50% of Cornerstone, receiving £186 million in cash upon completion along equivalent terms to the previous stake sale. Under the ownership structure, Virgin Media O2 will continue to proportionately consolidate Cornerstone as a joint operation.

Cornerstone is the UK’s largest mobile towers business, which was established in 2012 and has the highest density of towers in the UK. With two market-leading anchor tenants, Cornerstone owns and manages a nationwide network of around 20,000 sites used by Virgin Media O2 and Vodafone UK, providing critical services for approximately 60% of UK mobile subscribers. Established in 2007, Equitix is the UK’s largest mid-market infrastructure investor with more than £11 billion of equity invested across 350+ assets.

This strategic investment underscores Equitix’s commitment to expanding its digital infrastructure portfolio and supporting the UK’s telecommunications sector, meeting the growing demand for high-speed data and communication services. The addition of this investment will increase Equitix’s portfolio to over 23,000 towers located across the UK, Europe and the Middle East.

Lutz Schüler, CEO of Virgin Media O2 said: “This additional minority stake sale follows the same logic and strategic rationale as our previous deal, allowing us to successfully monetise our infrastructure while retaining a controlling share in an important asset. Equitix is another strong partner to have onboard that clearly sees the long-term value in Cornerstone at a time when we are investing billions of pounds to enhance 4G coverage and bring 5G to new areas of the country.”

Achal Bhuwania, CIO of Equitix said: “We are delighted with our investment in Cornerstone and building a partnership with Virgin Media O2. As the UK’s largest telecom tower portfolio, Cornerstone provides infrastructure services that are vital for nationwide connectivity. This investment demonstrates our continued commitment to invest in critical national infrastructure which is central to our mandate to invest in core infrastructure.”

Completion of the transaction is subject to the finalisation of certain conditions.