News

Deutsche Telekom divests GD Towers for €17.5bn

Telecommunication towers with wireless antennas on golden sky

Deutsche Telekom has completed the sale of a 51% stake in GD Towers, to DigitalBridge and Brookfield for roughly €17.5 billion.

In July 2022 Deutsche Telekom confirmed that would sell 51% of GD Towers to DigitalBridge and Brookfield. With the closing of the transaction, Deutsche Telekom is to received cash proceeds of approximately €10 billion.

At the same time, Pantheon Infrastructure, a global infrastructure fund, through a co-investment vehicle managed by affiliates of DigitalBridge Group, has pledged to invest €49.2 million ($54 million) in the newly acquired tower assets.

While GD Towers has been divested out of Deutsche Telekom's infrastructure network, Deutsche will remain a 49% shareholder and anchor tenant through a long-term master lease agreement.

"We are pleased to announce this latest transaction in a highly attractive asset that enables us to participate in the robust opportunity in European telecommunications with a high-quality counterparty," said Richard Sem, partner at Pantheon, PINT's investment manager.

"We believe the tailwinds in this sector provide attractive growth opportunities which are underpinned by long-term contracted cash flows that provide strong downside protection."

GD Towers has a portfolio of more than 40,000 mobile sites across Germany (circa 33,000) and Austria (circa 7,000), with roughly 800 employees. The company generated pro forma revenues of €1.1 billion in 2021. Adjusted pro forma earnings before interest, taxes, depreciation, and amortisation (EBITDA AL) totalled €640 million in 2021.

The management team led by CEO Bruno Jacobfeuerborn and chairman, while Deutsche Telekom's Thorsten Langheim will continue to manage the business.