The $1.26 billion deal signals a strategic shift in capital allocation and infrastructure management for institutional players
Telus is divesting a nearly 50 per cent stake in its newly launched tower infrastructure business, Terrion, to one of Canada's largest pension funds, La Caisse (formerly CDPQ) in a $1.26 billion deal that signals a strategic shift in capital allocation and infrastructure management.
Under the agreement, La Caisse will acquire a 49.9 per cent equity interest in both Terrion LP and its general partner, Terrion GP Inc., while Telus retains majority control with a 50.1 per cent stake. The deal values the tower unit at over $2.5 billion and is expected to reduce Telus' net debt by approximately $1.26 billion or equivalent to a 0.17x reduction in its net debt-to-EBITDA ratio.
La Caisse views the investment as a long-term bet on Canada's growing digital infrastructure needs.
"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."
The move forms part of Telus' broader strategy to optimize its balance sheet while unlocking value from passive assets. Proceeds from the transaction will be used primarily for deleveraging, with Telus reaffirming its target to bring net debt-to-EBITDA to 3.0x by 2027.
"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," said Darren Entwistle, president and CEO of Telus in a press release.
Headquartered in Montreal, Terrion will be Canada’s largest dedicated wireless tower operator, housing roughly 3,000 sites across British Columbia, Alberta, Ontario, and Quebec. While TELUS will carve out the passive infrastructure, including towers and rooftop sites, it will retain full ownership and control of all active network components and security systems. The arrangement ensures Telus maintains leadership in network performance while enabling Terrion to manage infrastructure growth and third-party co-location.
Under the terms of a pre-closing reorganization to be completed by Telus, the partnership allows Telus to lease tower capacity from Terrion under an eight-year agreement with renewal options. Importantly, Terrion will be unlevered at closing, and its financials will be consolidated into Telus' results.
"Telus will hold a 50.1 per cent equity interest in Terrion, with La Caisse holding the remaining 49.9 per cent. Aside from existing leases, Terrion will be unlevered at closing. Telus will consolidate Terrion's results into its financial statements," said the release.
The transaction is expected to close before the end of Q3 2025, pending regulatory approvals.
