Vodafone To Transfer 50% Stake In Cornerstone JV To Vantage Towers

(RTTNews) - British telecom major Vodafone Group Plc (VOD, VOD.L) Monday said its UK subsidiary, Vodafone Limited, and Telefonica UK Limited agreed for the commercialisation of Cornerstone Telecommunications Infrastructure Limited, the 50:50 owned joint venture company that owns and manages their passive tower infrastructure in the U.K.

Vodafone UK and Telefonica UK have each entered into long-term Master Services Agreements with Cornerstone. The agreements have initial terms of 8 years from 1 January 2021, with three 8-year renewal periods, and which establish Cornerstone as a preferred supplier of new sites for both operators.

Vodafone said it intends to transfer its 50% shareholding in Cornerstone to Vantage Towers in January 2021.

Cornerstone was established in 2012 by Vodafone UK and TEF UK to create and manage a single network of passive infrastructure. The tower infrastructure company in the UK operates about 14,200 macro sites and c.1,400 micro sites. The deal extends Vantage Towers' portfolio to about 82,000.

Vivek Badrinath, Vantage Towers Chief Executive, said, "Cornerstone is exactly the type of high quality grid we like to own: a number one market position, and two strong anchor tenants with network sharing agreements in place for whom we are the preferred supplier."