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By Amy-Jo Crowley, Andrés González and Paul Sandle
LONDON (Reuters) – Virgin Media O2 is in exclusive talks to sell a portion of its stake in Britain’s largest mobile tower network to GLIL Infrastructure, according to four sources familiar with the matter, in a deal that could value the business at about 2.5 billion dollars. pounds ($3.03 billion).
GLIL, a British pension fund company, has beaten other investment firms in an auction that Virgin Media O2 owners Liberty Global (NASDAQ:) and Telefónica (NYSE:) owned part of its 50% stake. in the tower company. called Cornerstone, earlier this year, sources said Friday.
If negotiations conclude successfully, an agreement for a minority stake of less than 25% could be announced next week, two of the sources added.
The sources warned that there was a possibility that no deal would be closed and asked not to be identified because the matter is confidential.
Telefónica and Liberty Global have been working with advisors on the sale of up to half of their combined 50% stake in Cornerstone.
Vodafone (NASDAQ owns the rest of the business through its Frankfurt-based subsidiary Vantage Towers.
Spokespeople for Telefónica, Liberty Global, Virgin Media O2 and GLIL declined to comment.
Cornerstone, founded in 2012, is Britain’s largest tower company, managing more than 20,000 sites, according to the company’s website.
In recent years, infrastructure and private equity investors have competed for shares in some of the biggest tower deals, including Deutsche Telekom’s (OTC:) sale of a majority stake in GD Towers, due to its stable cash performance and long-term contracts.
($1 = 0.8241 pounds)