What is going on with DBRG?
DigitalBridge Group, Inc. (DBRG) stock is higher today after the global digital infrastructure REIT announced today that its affiliate, DigitalBridge Investments, LLC, has agreed to acquire the mobile telecommunications tower business of Telenet Group Holding NV.
Telenet is a leading provider of entertainment and telecommunications services in Belgium.
The $820 million (€745 million) all-cash transaction will be funded through a combination of debt and equity financing, including a commitment from the DigitalBridge balance sheet of $517 million.
Shares of DBRG rose 1.16% to $6.99 in premarket trading on Friday.
What does this mean for DigitalBridge?
Telenet’s transaction of DigitalBridge will provide DigitalBridge with ownership of 100% of Telenet’s infrastructure and tower assets, including the company’s footprint of 3,322 sites in Belgium.
As Telenet has participated in 5G deployment across the country, the deal will further strengthen DigitalBridge’s 5G offering and allow them access to a growing market in a key European country.
Marc Ganzi, President and CEO of DigitalBridge, commented, “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.”
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 deal is expected to close in the second quarter of 2022.