The all-cash deal is valued at US$820 million (€745 million), on a cash-free and debt-free basis to be funded by DigitalBridge through a combination of debt and equity financing, including a contribution of $517 million (€470 million) from the DigitalBridge balance sheet.
Once completed DigitalBridge have ownership of 100% of Telenet’s passive infrastructure and tower assets, including the TowerCo’s 3,322 sites in Belgium, comprised of 2,158 owned sites and 1,164 third-party sites.
“Telenet’s tower business is a high-quality digital infrastructure asset with stable, predictable cashflows, high cash conversion, and long-term contracts. This transaction is the latest example of DigitalBridge’s commitment to working with leading telecom and technology companies globally to help them unlock embedded value in their networks via creative solutions built on long-standing relationships and a proven track record of successfully operating assets," said Marc Ganzi, president and CEO of DigitalBridge.
"We see significant headroom for growth in the Belgian telecom market through the enhancement of mobile penetration and data usage, and we look forward to meeting and exceeding Telenet’s increased coverage needs.”
In addition, under the terms of the agreement DigitalBridge will enter into a long-term Master Lease Agreement with Telenet, which includes an initial period of 15 years and two renewals of 10 years each. The agreement also includes a build-to-suit commitment to deploy a minimum of 475 additional new sites.
The transaction is due to close in Q2 of 2022 and DigitalBridge has confirmed its intention to transfer ownership of the TowerCo to a fund affiliated with the DigitalBridge investment management platform.
