Osler advising TELUS; Stikeman Elliott acting for La Caisse
TELUS Corp. has struck a deal to sell a 49.9 percent interest in its newly created wireless tower company, Terrion, to La Caisse for approximately $1.26 billion.
Terrion, headquartered in Montréal, will take ownership of about 3,000 passive macro cell tower sites that TELUS is spinning off from its network operations. The transaction values Terrion at more than $2.5 billion, positioning it as Canada’s largest dedicated wireless tower operator. TELUS will retain a 50.1 percent stake and continue to control active network components and security systems.
According to TELUS, the sale proceeds will be used to reduce its net debt, lowering its net debt-to-EBITDA ratio by an estimated 0.17 times. The company has set a target ratio of 3.0x by 2027.
“The establishment of Terrion allows TELUS to focus on our innovative service offerings and next-generation connectivity for the benefit of our customers, while enabling Terrion to specialize in infrastructure development, site management and third-party co-location,” said TELUS president and CEO Darren Entwistle. “Additionally, this transaction is in line with the federal government’s objectives of enhancing national connectivity and digital infrastructure, exemplifying the type of large-scale development Canada needs to maintain its competitive advantage in the global digital economy.”
The new operator will lease tower capacity back to TELUS under an initial eight-year agreement with options to renew, while also offering wholesale access to other carriers in a move the companies say will boost competition and improve service across the country.
“La Caisse brings a combination of telecom sector expertise, long-term capital and an active asset management approach to help establish Terrion as a full-fledged player and position it for long-term growth,” said La Caisse Executive Vice-President and head of infrastructure Emmanuel Jaclot. “This landmark transaction complements our existing portfolio of tower companies across the United States, Europe and New Zealand.”
Industry veteran Eros “Woody” Spadotto will lead Terrion as CEO. The company’s assets span British Columbia, Alberta, Ontario and Quebec, including coverage in six of Canada’s seven largest metropolitan areas.
“We are privileged to partner with La Caisse, a preeminent Canadian pension fund with meaningful tower experience and a strong record of execution that shares our commitment to stewardship and to advancing connectivity and prosperity across Canada,” said Spadotto. “Together, we’re building the digital foundation for a stronger, more connected future — one that’s built for excellence, inspired by partnership and driven by innovation.”
The transaction remains subject to regulatory approval and customary closing conditions, with completion expected before the end of the third quarter of 2025.
Legal counsel for TELUS was provided by Osler, Hoskin & Harcourt LLP and Allen Overy Shearman Sterling LLP, while La Caisse was advised by Stikeman Elliott LLP. TD Securities acted as TELUS’s financial advisor and National Bank Financial Markets assisted La Caisse on financing matters.
Osler’s team consisted of Brett Anderson, Alex Gorka, Jeremy Wu, Shira Dveris, Jessica Redmond, Alexandra Alacchi, Douglass Dawson, Jessie Armour (Corporate), Ted Liu, Alexia Magneron (Technology), Ryan Nielsen, Sandy Yeung, Simon Laughlin (Real Estate), Patrick Marley, James Chang, Sean Timlick, Alan Kenigsberg (Tax), Michelle Lally, Zach Rudge (Regulatory), Lynne Lacoursiere, Nick Guadagnolo (Executive Compensation) Damian Rigolo (Employment), Jon Marin (Pensions and Benefits), Adam LaRoche and Erika Romanow (Privacy).
