DigitalBridge to Acquire Telenet’s Tower Business for $820m
DigitalBridge Group a short while ago declared that an affiliate, DigitalBridge Investments has agreed to get the cell telecommunications tower company (TowerCo) of Telenet Group for $820million.
The transaction is being funded by means of a blend of credit card debt and equity financing, such as a motivation from the DigitalBridge balance sheet of €470 million, or $517 million1. DigitalBridge intends to subsequently transfer its ownership of TowerCo to a fund affiliated with DigitalBridge investment decision administration platform, in aid of the firm’s ongoing advancement of new expenditure strategies.
The transaction with Telenet, a foremost company of entertainment and telecommunications expert services in Belgium, will deliver DigitalBridge with possession of 100% of Telenet’s passive infrastructure and tower assets, which includes TowerCo’s nationwide footprint of 3,322 web-sites in Belgium, such as 2,158 owned sites and 1,164 third-occasion sites.
As a result of the acquisition, DigitalBridge will capitalize on the exceptional prospect to produce and devote in the very first independent TowerCo in Belgium with an expansive footprint, a full tenancy ratio of 1.2x, and a tenancy ratio of 1.6x in towers. The transaction makes the foundation for DigitalBridge to profit from Telenet’s increased participation in 5G deployment to meet up with escalating coverage wants as underscored by strong market place and macroeconomic tendencies in the telecom.
Below the terms of the arrangement, DigitalBridge will enter into a extensive-time period Master Lease Arrangement with Telenet, which involves an preliminary time period of 15 decades and two renewals of 10 yrs each individual. The settlement also includes a establish-to-go well with dedication to deploy a least of 475 further new web-sites.
Marc Ganzi, President and CEO of DigitalBridge
Telenet’s tower business is a significant-good quality digital infrastructure asset with steady, predictable cashflows, higher money conversion, and long-phrase contracts. This transaction is the most current instance of DigitalBridge’s determination to operating with top telecom and technologies companies globally to help them unlock embedded price in their networks by means of creative answers constructed on lengthy-standing associations and a proven monitor document of properly running property.