TELUS Sells 49.9% Stake in Cell Towers to La Caisse for $1.26 Billion
Telus Corp. says it’s selling a 49.9 per cent stake in a newly spun-out wireless tower operator to La Caisse for $1.26 billion as it also reported its second quarter income fell from last year.
The telecommunications company says the new operator called Terrion will be based in Montreal, and that the partial sale of the assets will go toward deleveraging.
The sale comes as Telus reported a net loss of $245 million for the three months ending June 30, compared to earnings of $221 million in the same quarter last year, as it took a $500 million impairment of goodwill related to Telus Digital.
Adjusted net income worked out to $342 million, or 22 cents per diluted share for the period, down from $366 million, or 25 cents per share last year.
The mean analyst estimate had been for earnings of 23 cents per share, according to LSEG Data & Analytics.
Consolidated operating revenue totalled $5.08 billion in the quarter, up from $4.97 billion in the quarter last year.
Jonathan Lamont of Mobile Syrup also reports 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.
Private Capital Journal also reports La Caisse to invest $1.26B for 49.9% interest in TELUS’ newly formed Terrion:
TELUS Corporation has entered into a definitive agreement with La Caisse pursuant to which La Caisse will acquire a 49.9% equity interest in each of Terrion LP and its general partner, Terrion GP Inc., for approximately $1.26 billion.
The transaction values Terrion at over $2.5 billion.
TELUS is expected to reduce net debt by approximately $1.26 billion, or by approximately 0.17x of TELUS’ current net debt-to-EBITDA ratio.
Terrion is a newly created tower operator that will hold passive macro wireless infrastructure assets, commonly known as cell towers, that TELUS is carving out of its business. TELUS will retain full ownership and control of all active network components and security systems, ensuring continued leadership in mobile network coverage, reliability and superiority.
The transaction is subject to regulatory approvals and other customary closing conditions, which are expected to close by end of Q3 2025.
The Terrion transaction is the second Canadian carveout by Canada’s three major telecom companies, in a bid to reduce their debts.
In June 2025, Rogers Communications Inc. closed its $7 billion equity transaction, selling a 49.9% of non-controlling interest in a new Canadian subsidiary of Rogers that owns a portion of Rogers wireless backhaul transport infrastructure, to funds managed by Blackstone, Canada Pension Plan Investment Board (CPP Investments), Caisse de dépôt et placement du Québec (La Caisse), Public Sector Pension Investment Board (PSP Investments), British Columbia Investment Management Corporation (BCI) and Investment Management Corporation of Ontario (IMCO).
With exception of selling a 51% interest in proposed Network FiberCo/Ziply Fiber in the US to PSP Investments, BCE/Bell has yet to make any debt reduction-inducing Canadian carveout transaction.
La Caisse issued a press release stating TELUS announces partnership with it and that it will acquire a 49.9% interest in newly formed Canadian wireless tower infrastructure operator Terrion for $1.26 billion:
TELUS Corporation (“TELUS”) today announced that it has entered into a definitive agreement with La Caisse, a global investment group and Canada’s second-largest pension fund, who will acquire a 49.9% equity interest in each of Terrion LP (“Terrion”) and its general partner, Terrion GP Inc., for approximately $1.26 billion. Terrion, a newly created tower operator headquartered in Montreal, will hold passive macro wireless infrastructure assets, commonly known as cell towers, that TELUS is carving out of its business. TELUS will retain full ownership and control of all active network components and security systems, ensuring continued leadership in mobile network coverage, reliability and superiority. This transaction underscores the company’s progress toward robust and long-term sustainable growth, as the proceeds will be used to accelerate deleveraging. The transaction values Terrion at over $2.5 billion and is expected to reduce TELUS’ net debt by approximately $1.26 billion, or by approximately 0.17x of TELUS’ current net debt-to-EBITDA ratio.
The partnership establishes Terrion as Canada’s largest dedicated wireless tower operator and enables wholesale access and third party co-location in support of national wireless competition in Canada as part of TELUS’ ongoing commitment to bring world leading connectivity to more Canadians.
“This transformative partnership unlocks significant value for TELUS shareholders and enhanced connectivity for our customers. Notably, it accelerates our path toward our target net debt-to-EBITDA ratio of 3.0x by 2027, while supporting Canada’s global leadership in wireless connectivity," said Darren Entwistle, President and CEO, TELUS. “The establishment of Terrion allows TELUS to focus on our innovative service offerings and next-generation connectivity for the benefit of our customers, while enabling Terrion to specialize in infrastructure development, site management and third-party co-location. Importantly, just as we enable our telecom peers with wholesale access to our mobility network to serve their customers, Terrion will provide an avenue for other wireless carriers to leverage TELUS’ infrastructure on a wholesale basis for the betterment of their mobility businesses. Additionally, this transaction is in line with the federal government’s objectives of enhancing national connectivity and digital infrastructure, exemplifying the type of large-scale development Canada needs to maintain its competitive advantage in the global digital economy. Importantly, I am thrilled to welcome my long-time colleague, Eros “Woody” Spadotto, back to our TELUS family, as he assumes the exciting and important role of CEO of Terrion. Moreover, I extend my sincere appreciation to the dedicated teams at TELUS and La Caisse who worked diligently, innovatively and collaboratively to bring this important initiative to fruition.”
Under the terms of a pre-closing reorganization to be completed by TELUS, Terrion will emerge as Canada’s largest dedicated tower operator, with roughly 3,000 sites across British Columbia, Alberta, Ontario and Quebec. Having a single company focused on tower expansion and developing new industry-wide partnerships will positively impact all wireless providers’ abilities to enhance coverage, capacity and service improvements for Canadians. Terrion will enter into an agreement to lease capacity on the towers to TELUS for an initial period of 8 years, with renewal options thereafter, ensuring seamless access to existing and new towers. TELUS will hold a 50.1% equity interest in Terrion, with La Caisse holding the remaining 49.9%. Aside from existing leases, Terrion will be unlevered at closing. TELUS will consolidate Terrion’s results into its financial statements.
“With this investment, we are partnering with TELUS to establish Canada’s largest dedicated wireless tower operator, an important step in strengthening the country’s digital connectivity and mobile network resilience,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at La Caisse. “La Caisse brings a combination of telecom sector expertise, long-term capital and an active asset management approach to help establish Terrion as a full-fledged player and position it for long-term growth. This landmark transaction complements our existing portfolio of tower companies across the United States, Europe and New Zealand.”
“We are privileged to partner with La Caisse, a preeminent Canadian pension fund with meaningful tower experience and a strong record of execution that shares our commitment to stewardship and to advancing connectivity and prosperity across Canada,” said Eros Woody Spadotto, Chief Executive Officer of Terrion. “With nearly 3,000 sites — including coverage in six of the country’s top seven metropolitan areas — we are proud to become Canada’s leading dedicated tower company. Together, we’re building the digital foundation for a stronger, more connected future — one that’s built for excellence, inspired by partnership and driven by innovation.”
Terrion will deliver high-performance wireless towers and rooftop installations, purpose-built for scalable, multi-tenant use and next-generation technologies that will forge the backbone of Canada’s digital future. Terrion will seamlessly blend cutting-edge tower technology, relentless innovation and sleek design to meet the unique challenges of modern connectivity in urban landscapes and rural environments alike.
The transaction is subject to regulatory approvals and other customary closing conditions, which are expected to be received before the end of Q3, 2025.
Advisors
TELUS has retained TD Securities Inc. as its exclusive financial advisor and Osler, Hoskin & Harcourt LLP and Allen Overy Shearman Sterling LLP as its legal advisors. La Caisse has retained Stikeman Elliott as its legal advisor. National Bank Financial Markets has assisted La Caisse on financing matters.
This will be my only comment this week and I'll keep it short and sweet.
Pension funds and telecoms are a match made in heaven because the former have capital to deploy and the latter need capital to reduce debt and grow their operations.
This is the second large Canadian carveout in the telecom space to reduce debt and it's not only the capital that La Caisse provides, it also has operational experience in towers having partnered with American Towers in 2021 to help that company grow its operations in Europe.
So, La Caisse knows the towers business extremely well and has structured a deal that will allow it to benefit over the long run.
Terrion will now be Canada’s largest dedicated wireless tower operator, and it will support national wireless competition by enabling wholesale access and third-party co-location. (as the second article above states, co-location is a strategy allowing multiple network operators to share space on a single tower, which can cut costs and boost network efficiency.)
Terrion will also be based in Montreal and that was an important point for La Caisse which has a dual mandate to get requisite returns and boost Quebec's economy.
Below, Brian Madden, Chief Investment Officer at First Avenue Investment Counsel, shares his top stock picks to watch in the market starting off with TELUS.
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