Telus to sell 49.9% stake in wireless infrastructure to La Caisse

Vancouver-based national telecom Telus confirmed that it’s selling a 49.9 per cent stake in its wireless tower infrastructure.

Quebec-based La Caisse, a global investment group and Canada’s second-largest pension fund, will acquire a stake in Terrion, Telus’ newly formed tower operator company that’s headquartered in Montreal. La Caisse will pay about $1.26 billion for the 49.9 per cent equity interest in Terrion. Telus will hold the remaining 50.1 per cent stake.

Telus says it will retain full ownership and control of active network components and security systems. It also plans to use the proceeds to accelerate deleveraging and reduce the company’s debt.

The telecom says Terrion is now Canada’s largest dedicated wireless tower operator, and it will support national wireless competition by enabling wholesale access and third-party co-location. (Co-location is a strategy allowing multiple network operators to share space on a single tower, which can cut costs and boost network efficiency.)

Per a Telus release, Terrion will have roughly 3,000 sites across B.C., Alberta, Ontario, and Quebec. The company will also continue to deliver wireless towers and rooftop installations.

Telus and Terrion entered into an agreement under which the former will lease tower capacity to the latter for an initial period of eight years, with renewal options following.

However, the transaction is still subject to regulatory approvals and other conditions. Telus expects to receive the necessary approvals before the end of Q3 2025.

Telus’ confirmation of plans to sell a stake in its wireless infrastructure comes after reporting earlier this month highlighted a bidding war over the telco’s assets.

Telus is far from the only Canadian carrier selling stakes in its wireless network to pay down debt. Rogers also sold a minority stake in its wireless backhaul to funds managed by U.S. investment management company Blackstone for $7 billion. Bell has taken a slightly different approach, choosing to expand into the U.S. market with recent fibre acquisitions, while at home, the company continues to rail against the CRTC’s wholesale fibre rules.