Deutsche Telekom offloads 51pc of GD Towers business

Deutsche Telekom announced the sale of a 51% stake in GD Towers, which holds its Germany and Austria tower assets, for an enterprise value of €17.5bn (£14.81bn) on Thursday.

The German telecoms giant said the sale to a partnership of DigitalBridge and Brookfield would bring both towers expertise and capital to accelerate the strategic plans at GD Towers, for “enhanced” value creation.

Deutsche Telekom would retain the 49% stake in GD Towers, with “significant” minority protection rights, maintaining its exposure to future value upside.

A “favourable” master lease agreement and joint governance set-up would enable Telekom Deutschland and Magenta Austria to continue their anchor tenancy.

Estimated cash proceeds of €10.7bn would be used for group-level deleveraging at Deutsche Telekom, and the acceleration of its path towards a 50.1% stake in T-Mobile US.

The firm said the transaction was expected to close towards the end of 2022.

“Deutsche Telekom once again delivers on its strategic agenda,” said chief executive officer Tim Höttges.

“We crystalise the value of our tower assets, thereby creating value for our shareholders.

“At the same time the deal allows us to continue improving Deutsche Telekom’s undisputed network leadership in Germany and benefit from further value upside of the towers business through our retained 49% stake.”

At 1158 CEST (1058 BST), shares in Deutsche Telekom were down 1.74% at €18.86.

Reporting by Josh White at Sharecast.com.