Tele2 Forms Baltic Telecom Tower JV With Manulife, Valued at €648.3m

Tele2 is forming a joint venture with Manulife Investment Management to rollout mobile and 5G services in the Baltic region. The new venture, valued at 560 million euros, will own around 2,700 tower and rooftop sites in Estonia, Latvia, and Lithuania. Tele2 will receive around 440 million euros in cash proceeds from the agreement. The joint venture will be based in Lithuania.

Tele2 AB (Nasdaq Stockholm: TEL2 A and TEL2 B) has entered into a strategic partnership with Global Communications Infrastructure LLC (GCI), backed by Manulife Investment Management (Manulife IM), to create the first pan-Baltic tower company. The new venture will cover all three Baltic countries—Estonia, Latvia, and Lithuania—and is valued at EUR 560 million on a debt-free basis. Tele2 expects to receive EUR 440 million in cash proceeds from the transaction.

The joint venture, based in Lithuania, will own approximately 2,700 tower and rooftop sites across the three Baltic countries. Following the deal, Tele2 will serve as the anchor tenant under a 20-year Master Service Agreement (MSA), ensuring long-term and secure access to critical infrastructure. The partnership aims to unlock value in Tele2's mobile telecom infrastructure while enabling continued growth and rollout of mobile and 5G services in the region.

Jean Marc Harion, President and CEO of Tele2, stated, "We want to develop our tower assets together with a partner who brings both capital and expertise. This is a way for us to create additional value from the assets we have, together with an experienced partner who knows this business well." Tim Culver, CEO of GCI, added, "We are proud to partner with Tele2 and support the future growth of digital connectivity in the Baltics. With a long-term perspective and commitment to investment, we see strong potential to develop high-quality, efficient, and scalable infrastructure."

The transaction is expected to have a negative underlying EBITDAaL impact of around EUR 35 million in 2026 on Tele2 and is subject to customary regulatory approvals. It is anticipated to be finalized in early 2026.

References:
[1] https://www.tele2.com/media/news/2025/tele2-and-manulife-im-backed-gci-partner-to-create-the-first-pan-baltic-tower-company/
[2] https://www.marketwatch.com/story/tele2-to-form-baltic-telecom-tower-jv-with-manulife-79edce24
[3] https://www.marketscreener.com/news/tele2-and-gci-form-joint-pan-baltic-tower-company-ce7c5ed9d98ff126
[4] https://www.investing.com/news/company-news/tele2-to-form-baltic-tower-company-with-manulifebacked-gci-93CH-4172138