Advanced Television

Deutsche Telekom closes tower unit sale

February 2, 2023

By Colin Mann

Deutsche Telekom has confirmed the completion of the partial sale of its tower business in Germany and Austria, which is combined in the GD Towers unit. The Group had announced in July 2022 that it would sell 51 per cent of GD Towers to DigitalBridge and Brookfield.

With the closing of the transaction, Deutsche Telekom will receive a total of more than €10 billion from the buyers and GD Towers, suggesting that it  has successfully completed the process announced at the Capital Markets Day 2021 of positioning itself as best as possible for the future and enhancing the value of its tower business.

GD Towers operates more than 40,000 mobile sites in Germany and Austria with around 800 employees. The company generated pro forma revenues of €1.1 billion in 2021. Adjusted pro forma EBITDA AL amounted to €640 million in 2021. The management team led by CEO Bruno Jacobfeuerborn and Chairman Thorsten Langheim will continue to manage the business. Deutsche Telekom retains 49 per cent of the shares with significant minority rights and thus retains a stake in future value growth in what it describes as the attractive infrastructure business. Telekom Deutschland and Magenta Austria will continue to have unrestricted access to GD Towers’ passive infrastructure via long-term lease agreements.

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