Wedoany.com Report-Aug. 9, Tele2 AB has announced the creation of a new telecommunications infrastructure company covering all three Baltic countries through a 50/50 joint venture with Global Communications Infrastructure (GCI), a platform backed by Manulife Investment Management. The new tower company, valued at EUR 560 million on a debt-free basis, will enable Tele2 to enhance operational focus and unlock value from its mobile network assets, while supporting the continued expansion of mobile and 5G services in Estonia, Latvia, and Lithuania.

Headquartered in Lithuania, the new company will manage approximately 2,700 tower and rooftop sites across the Baltics. Tele2 will serve as the anchor tenant under a 20-year Master Service Agreement (MSA), securing long-term access to critical infrastructure for its mobile operations. The company also expects to receive a cash inflow of around EUR 440 million as part of the transaction.

The agreement includes a ten-year investment plan to expand the site portfolio, aiming to improve mobile network coverage and support future digital growth throughout the region. The investment will focus on both new site development and upgrades to existing infrastructure to meet increasing demand for high-speed and reliable connectivity.

The transaction, which is subject to standard regulatory approvals, is scheduled to close in early 2026. Once finalized, Tele2 expects the deal to have an estimated negative impact of around EUR 35 million on its underlying EBITDAaL in 2026, due to changes in ownership and operational cost structures.

Jean Marc Harion, President and CEO of Tele2, stated: “We want to develop our tower resources together with a partner who contributes 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 the industry well.”

Tim Culver, CEO of GCI, commented: “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 great potential to develop high-quality, efficient and scalable infrastructure.”

This partnership represents a strategic move for Tele2 to optimize its asset portfolio while maintaining reliable access to infrastructure. For GCI, it offers a key entry into the Baltic market with an experienced operator, as both parties commit to supporting regional connectivity and future network development.