Bell sells 49.9 percent stake in cell towers to Caisse for $2.45 billion

Explainer

Bell is selling nearly half of its cellphone tower business to the Caisse de dépôt et placement du Québec for $2.45 billion. The deal gives the Caisse a 49.9 percent stake in a new company that will own more than 5,000 sites, valuing the venture at $4.9 billion. Bell will keep a controlling 50.1 percent interest and expects the transaction to close in early 2027 after regulatory approval. Chief executive Mirko Bibic said the money will help the company reduce its debt and fund new projects like artificial intelligence data centres.

"The partnership unlocks the significant value embedded in our infrastructure," Bibic said. He noted that several institutional investors had bid on the towers during a months-long auction. The new company, temporarily named TowerCo, will charge Bell and other clients fees to use its infrastructure. Bibic said he was pleased the Montreal-based Caisse shared Bell's vision for the assets.

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What will Bell do with the money?

Proceeds from the sale will be used to pay down debt and finance growth areas, including a domestic AI infrastructure business and a U.S. fibre optic network. This move is part of a broader financial strategy Bibic outlined in early 2025, which also included a dividend cut of more than 50 percent and a plan for up to $7 billion in asset sales. The company aims to lower its debt-to-EBITDA ratio to 3.5 by the end of 2027, down from 3.7 at the end of June when Bell carried $37.5 billion in debt. Bell has already sold its stake in Maple Leaf Sports and Entertainment for $4.7 billion and announced other business sales. Bell's AI subsidiary, Bell AI Fabric, plans to build data centres in Saskatchewan. That project expanded to a potential $1.7 billion commitment last September when U.S. firms CoreWeave and Cerebras agreed to supply computing power. Analyst Maher Yaghi of Scotiabank said last month that Bell could monetize its towers to fund such AI infrastructure, a move he would support if the valuation was attractive.

What is the Caisse's plan for the towers?

The Caisse intends to attract other wireless service providers to place their equipment on the towers, a strategy it has used in other markets. "Once you’ve built cellphone towers, the cost of adding additional customers to the network is minimal," said Emmanuel Jaclot, the Caisse's head of infrastructure and sustainability. He said the rise of new competitors like SpaceX makes tower assets particularly appealing. The Caisse already owns a 49 percent stake in Telus's towers, purchased last year for $1.26 billion, and holds telecom tower investments in the United States, New Zealand and India. "Bell’s extensive footprint and La Caisse’s global digital infrastructure expertise will give this new platform the focus and long-term perspective to grow," Jaclot said. The Caisse manages a portfolio worth $552 billion, including $75 billion in infrastructure assets. Former Bell executive J. Bruce Furlong will serve as CEO of the new TowerCo venture.

How does this compare to other telecom deals?

Bell's move follows a global trend where telecom companies sell their tower assets to raise capital. Its domestic rivals, Telus and Rogers Communications, have also completed billion-dollar infrastructure sales. Bibic stated that Bell received a valuation for its towers similar to Telus's, despite Bell's network being twice the size. Over the past twenty years, most major telecom operators in the United States, Asia and Europe have sold their towers.

What assets and control does Bell retain?

Bell will maintain full ownership and control of its wireless spectrum, all active network equipment and any land it owns. The company will continue to access the tower sites through long-term lease agreements with TowerCo, which will also build new sites for Bell as required. TowerCo will have no financial debt when the deal closes, and its results will be consolidated into Bell's financial statements. Bell is also developing a U.S. fibre network called Ziply Fiber in partnership with the Public Sector Pension Investment Board, which has committed over US$1.5 billion.

With files from The Canadian Press, The Globe and Mail and Narcity