Deutsche Telekom sells 51% of its tower business in Germany and Austria to DigitalBridge and Brookfield

MADRID, 14 Jul. (EUROPA PRESS) -

Deutsche Telekom has reached an agreement to sell 51% of GD Towers, comprising its tower assets in Germany and Austria, to Digital Bridge and Brookfield at a company valuation of €17.5 billion cash and debt free .

The transaction will reduce Deutsche Telekom's financial leverage by €10.7 billion and net debt, including leases, by €6.5 billion, allowing it to speed up "the path towards its goal of reaching a 50.1% stake in the T- MobileUS".

The German operator will retain a 49% stake in GD Towers, thus retaining considerable exposure to the future value of this class of telecommunications infrastructure assets, as well as the right to appoint two of the five members of the shareholders' committee, including the initial president. In addition, it also has the right to regain control and reconsolidate GD Towers in the future.

In this way, the transaction, which will be completed by the end of 2022, marks the conclusion of the German operator's strategic review of its tower business announced in May 2021.

"We crystallize the value of our tower assets, thereby creating value for our shareholders," said Tim Höttges, CEO of Deutsche Telekom. "At the same time, the deal allows us to continue to enhance Deutsche Telekom's undisputed network leadership in Germany and benefit from further upside of the tower business through our retained 49% stake," he added.

GD Towers has around 800 employees and operates more than 40,000 sites in Germany and Austria. The company generated €1.1 billion of proforma revenue in 2021.

The Spanish Cellnex confirmed on Wednesday its withdrawal from the process for the potential acquisition of a stake in GD Towers, after the company reported on May 30 that it was studying the operation accompanied by the Brookfield investment fund.