Virgin Media O2 is in exclusive talks to sell a slice of its shareholding 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 £2.5bn. 

GLIL, a partnership of British pension funds, has prevailed over other investment firms in an auction that Virgin Media O2’s owners, Liberty Global and Telefonica  held for part of their 50 per cent stake in the tower company, called Cornerstone, earlier this year, the sources said on Friday.

Vodafone owns the rest of the business through its Frankfurt-based subsidiary Vantage Towers. 

Spokespeople for Telefonica, Liberty Global, Virgin Media O2 and GLIL declined to comment.

Cornerstone, established 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 slices in some of the largest tower deals, including Deutsche Telekom’s sale of a majority stake in GD Towers, because of their stable cash yield and long-term contracts.

Reuters – Amy-Jo Crowley, Andres Gonzalez and Paul Sandle