Creates First Independent TowerCo in Belgium
and Positions DigitalBridge to Benefit from Telenet’s Increased
Participation in 5G Deployment to Meet Growing Coverage Needs
Transaction Underpinned by Secure, Long-Term
Contracted Cash Flows, Attractive Market Dynamics, and Growth
Driven by Success-Based Capex
DigitalBridge Group, Inc. (NYSE:DBRG) today announced that an
affiliate, DigitalBridge Investments, LLC (collectively
“DigitalBridge”), has agreed to acquire the mobile
telecommunications tower business (“TowerCo”) of Telenet Group
Holding NV (Euronext Brussels: TNET, “Telenet”) in an all-cash
transaction valued at €745 million, or $820 million1, on a
cash-free and debt-free basis. The transaction is being funded via
a combination of debt and equity financing, including a commitment
from the DigitalBridge balance sheet of €470 million, or $517
million1. DigitalBridge intends to subsequently transfer its
ownership of TowerCo to a fund affiliated with DigitalBridge
investment management platform, in support of the firm’s continued
development of new investment strategies.
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the full release here:
https://www.businesswire.com/news/home/20220324006067/en/
Marc C. Ganzi is President and Chief
Executive Officer at DigitalBridge and has been an investor and
operator in the digital infrastructure sector for more than 25
years. Mr. Ganzi has led DigitalBridge’s transformation to become a
premier platform for digital infrastructure and real estate
investment. (Photo: Business Wire)
The transaction with Telenet, a leading provider of
entertainment and telecommunications services in Belgium, will
provide DigitalBridge with ownership of 100% of Telenet’s passive
infrastructure and tower assets, including TowerCo’s nationwide
footprint of 3,322 sites in Belgium, including 2,158 owned sites
and 1,164 third-party sites.
Through the acquisition, DigitalBridge will capitalize on the
unique opportunity to create and invest in the first independent
TowerCo in Belgium with an expansive footprint, a total tenancy
ratio of 1.2x, and a tenancy ratio of 1.6x in towers. The
transaction creates the foundation for DigitalBridge to benefit
from Telenet’s increased participation in 5G deployment to meet
growing coverage needs as underscored by robust market and
macroeconomic trends in the telecom.
Marc Ganzi, President and CEO of DigitalBridge, said, “Telenet’s
tower business is a high-quality digital infrastructure asset with
stable, predictable cashflows, high cash conversion, and long-term
contracts. This transaction is the latest example of
DigitalBridge’s commitment to working with leading telecom and
technology companies globally to help them unlock embedded value in
their networks via creative solutions built on long-standing
relationships and a proven track record of successfully operating
assets. We see significant headroom for growth in the Belgian
telecom market through the enhancement of mobile penetration and
data usage, and we look forward to meeting and exceeding Telenet’s
increased coverage needs.”
Under the terms of the agreement, DigitalBridge will enter into
a long-term Master Lease Agreement with Telenet, which includes an
initial period of 15 years and two renewals of 10 years each. The
agreement also includes a build-to-suit commitment to deploy a
minimum of 475 additional new sites.
The transaction is expected to close in the second quarter of
2022 and does not require any further regulatory approvals.
DigitalBridge was advised by Latham & Watkins and Stibbe
(acting as legal advisors), PwC (acting as financial and tax
diligence advisor) and EY Parthenon (as commercial advisor).
Telenet was advised by A&O (acting as legal advisor), Goldman
Sachs International (acting as financial advisor), Deloitte (as
financial due diligence and tax advisor) and PMP (as commercial
advisor).
About DigitalBridge
DigitalBridge (NYSE: DBRG) is a leading global digital
infrastructure REIT. With a heritage of over 25 years investing in
and operating businesses across the digital ecosystem including
cell towers, data centers, fiber, small cells, and edge
infrastructure, the DigitalBridge team manages a $45 billion
portfolio of digital infrastructure assets on behalf of its limited
partners and shareholders. Headquartered in Boca Raton,
DigitalBridge has key offices in New York, Los Angeles, London, and
Singapore. For more information visit www.digitalbridge.com.
About Telenet
As a provider of entertainment and telecommunication services in
Belgium, Telenet Group is always looking for the perfect experience
in the digital world for its customers. Under the brand name
Telenet, the company focuses on offering digital television,
high-speed Internet and fixed and mobile telephony services to
residential customers in Flanders and Brussels. Under the brand
name BASE, it supplies mobile telephony in Belgium. The Telenet
Business department serves the business market in Belgium and
Luxembourg with connectivity, hosting and security solutions. More
than 3,000 employees have one aim in mind: making living and
working easier and more pleasant. Telenet Group is part of Telenet
Group Holding NV and is quoted on Euronext Brussel under ticker
symbol TNET. For more information, visit www.telenet.be. Liberty
Global - one of the world’s leading converged video, broadband and
communications companies, innovating and empowering people in six
countries across Europe to make the most of the digital revolution
– owns a direct stake of 58.3% in Telenet Group Holding NV
(excluding any treasury shares held by the latter from time to
time).
Cautionary Statement regarding Forward-Looking
Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” or “potential” or the negative of these
words and phrases or similar words or phrases which are predictions
of or indicate future events or trends and which do not relate
solely to historical matters. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond our control, and may cause
actual results to differ significantly from those expressed in any
forward-looking statement. Factors that might cause such a
difference include, without limitation, whether DigitalBridge will
complete the acquisition of TowerCo within the time frame
anticipated or at all, whether DigitalBridge will subsequently
transfer its equity in TowerCo to an affiliated fund, whether
DigitalBridge will realize any of the anticipated benefits from the
acquisition, and other risks and uncertainties, including those
detailed in DigitalBridge’s Annual Report on Form 10-K for the year
ended December 31, 2021, and its other reports filed from time to
time with the U.S. Securities and Exchange Commission (“SEC”). All
forward-looking statements reflect the Company’s good faith
beliefs, assumptions and expectations, but they are not guarantees
of future performance. DigitalBridge cautions investors not to
unduly rely on any forward-looking statements. The forward-looking
statements speak only as of the date of this press release.
DigitalBridge is under no duty to update any of these
forward-looking statements after the date of this press release,
nor to conform prior statements to actual results or revised
expectations, and DigitalBridge does not intend to do so.
1 Based on exchange rate as of March 24, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220324006067/en/
Investors: Severin White Managing Director, Head of Public
Investor Relations (212) 547-2777
severin.white@digitalbridge.com
Media: Joele Frank, Wilkinson Brimmer Katcher Jon Keehner / Aura
Reinhard (212) 355-4449 dbrg-jf@joelefrank.com
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