Canadian carrier Telus has begun the process to sell a stake of its cellphone tower network for an estimated CA$1 billion ($700 million).
The carrier wants to explore a sale to raise cash to pay down debt and also fund growth plans.
Canadian publication The Globe and Mail reports that Vancouver-based Telus has hired TD Securities to pursue investors and tower owners on acquiring a 49.9 percent stake in its 3,000-tower portfolio.
In a statement later in the day, Telus confirmed that it is looking to monetize its infrastructure assets.
“We have engaged with advisors to explore the monetization of our tower infrastructure. If we are able to do this within the parameters of our desired economics, it would enhance the efficiency and effectiveness of our network operations,” said Darren Entwistle, Telus president and CEO.
“This initiative reflects Telus’ broader commitment to long-term sustainable growth, as the company looks to strengthen its balance sheet as 100 percent of the proceeds would be used to pay down debt.”
Telus didn't specify the stake it was looking to sell, but did note a sale will help it achieve a leverage target ratio of three times net debt to EBITDA by 2027.
Founded in 1990, Telus serves more than ten million mobile subscribers across the country. The carrier also sells fiber broadband and TV subscription services.
