DigitalBridge Group, Inc. (NYSE: DBRG) has confirmed the acquisition of the mobile telecommunications tower business (TowerCo) of Telenet Group Holding NV in an all-cash transaction valued at €745 million, or $820 million1, on a cash-free and debt-free basis. The deal is being financed via a combination of debt and equity financing, including a promise from the DigitalBridge balance sheet of €470 million, or $517 million
DigitalBridge will be able to take advantage of a once-in-a-lifetime chance to build and invest in Belgium's first independent TowerCo, through the acquisition, with a large footprint, a 1.2x total tenancy ratio, and a 1.6x tenancy ratio in towers. The deal lays the groundwork for DigitalBridge to benefit from Telenet's greater engagement in 5G implementation to satisfy growing coverage needs, as evidenced by the telecom industry's strong market and macroeconomic trends.
Furthermore, under the terms of the deal, DigitalBridge will ink a long-term Master Lease Agreement with Telenet, which will last for 15 years with two 10-year renewals. A build-to-suit obligation to install a minimum of 475 additional new sites is also included in the agreement. Telenet's passive infrastructure and tower assets will be owned 100 percent by DigitalBridge. Moreover, it includes TowerCo's countrywide footprint of 3,322 sites in Belgium, including 2,158 owned sites and 1,164 third-party sites.
DigitalBridge believed that Telenet's tower business is a high-quality digital infrastructure asset with steady, predictable cash flows, good cash conversion, and long-term contracts. This transaction exemplifies DigitalBridge's devotion to partnering with renowned telecom and technology companies around the world to help them discover hidden value in their networks through innovative solutions based on long-standing partnerships and a proven record of successfully operating assets.