Canadian defined benefit pension fund Ontario Municipal Employees Retirement Scheme (OMERS) is to acquire the mobile phone network transmission towers and rooftop installations of TPG Telecom (ASX: TPG) for $950 million.
As a result of the acquisition of over 1,230 sites – mainly in metropolitan locations – OMERS Infrastructure will become the largest independent transmission towers company in Australia.
Announcing the deal on 9 May, OMERS Infrastructure said the towers would provide it with contracted revenue streams from a range of high-quality counterparties.
Under the terms of the acquisition, TPG Telecom has entered into 20-year contract to use the assets with options to extend. TPG Telecom has also committed to building additional towers to further expand the network.
The transaction is OMERS Infrastructure’s first 100% owned investment in Australia and its first investment in digital infrastructure in the Asia Pacific region.
OMERS Infrastructure’s senior managing director Asia-Pacific, Christopher Curtain, said: “Australian and Asia-Pacific more broadly are priority markets for OMERS Infrastructure where we continue to see significant investment opportunities.”
OMERS Infrastructure has stakes in other Australian assets, Port of Melbourne, Transgrid and renewable energy developer FRV Australia.
OMERS Infrastructure already has two investments digital infrastructure in Europe, in Deutsche Glasfaser in Germany and XP Fibre in France.
OMERS Infrastructure was advised by RBC Capital Markets, Baker McKenzie, PwC, Altman Solon, Grex Consulting and Alvarez & Marsal. TPG Telecom was advised by law firm Allens.