VMO2 selling its towers biz stake could net it over £1B

Ryan Daws is a senior editor at TechForge Media, with a seasoned background spanning over a decade in tech journalism. His expertise lies in identifying the latest technological trends, dissecting complex topics, and weaving compelling narratives around the most cutting-edge developments. His articles and interviews with leading industry figures have gained him recognition as a key influencer by organisations such as Onalytica. Publications under his stewardship have since gained recognition from leading analyst houses like Forrester for their performance. Find him on X (@gadget_ry) or Mastodon (@gadgetry@techhub.social)

Virgin Media O2 (VMO2) has begun the process of offloading at least 50 percent of its stake in Cornerstone, the UK’s largest telecoms towers company.

The sale of its entire stake could raise more than £1.5 billion if successful, with the total value of Cornerstone estimated to be around £3 billion.

The sale has been sent to potential bidders and VMO2 has appointed Goldman Sachs and JPMorgan to oversee the process. If the stake sale goes ahead, VMO2 will use the cash to help fund its network rollouts.

VMO2 has pledged to spend £10bn ($13.5bn) over the next five years after its official launch as a merged entity in mid-2021. The company is currently upgrading its hybrid fibre coaxial network to fibre and continuing its 5G rollout, both of which are costly endeavours. 

Selling passive infrastructure assets and businesses is a well-trodden path in the telecoms industry, as operators seek to release cash to deploy elsewhere.

While some operators have sold their towers altogether as part of debt-reduction efforts, others have retained a presence, attracted by the longer-term potential of the passive infrastructure space as networks become denser. 

Vodafone transferred its own stake in Cornerstone to its Vantage Towers unit two years ago, ahead of its IPO.

(Image Credit: Virgin Media O2)

Looking to revamp your digital transformation strategy? Learn more about Digital Transformation Week taking place in Amsterdam, California, and London.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

Tags: , , , , , , , ,

View Comments
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *