Telus has completed the sale of a minority stake in its cell phone-tower network to La Caisse, Canada’s second‑largest pension fund for $1.26 billion in an all-cash transaction.

La Caisse purchased a 49.9% interest in the network, which has been spun out as a new company named Terrion.

The transaction values Terrion at about $2.5 billion, and Telus will use all of the sale proceeds to accelerate deleveraging and reduce Telus’ $25-billion total net debt. Terrion has emerged as Canada’s largest dedicated tower operator with roughly 3,000 sites across British Columbia, Alberta, Ontario, and Quebec. Telus will consolidate Terrion’s results into its financial statements, retaining a 50.1% equity interest.

Terrion, headquartered in Montreal, now holds passive macro wireless infrastructure assets—commonly referred to as cell towers—that Telus carved out of its business. Telus will retain full ownership and control of all active network components and security systems.

The deal follows others that have seen other Canadian communications divest stakes in their cell-tower networks.

“This transformative partnership unlocks significant value for Telus shareholders and enhanced connectivity for our customers,” Darren Entwistle, president and CEO of Telus, said previously.

“Notably, it accelerates our path toward our target net debt‑to‑EBITDA ratio of 3.0x by 2027, while supporting Canada’s global leadership in wireless connectivity.”

The creation of Terrion also allows Telus to focus on its innovative service offerings and next‑generation connectivity, while enabling Terrion to specialize in infrastructure development, site management and third‑party co‑location, he added.

“With this investment, we are partnering with Telus to establish Canada’s largest dedicated wireless tower operator, an important step in strengthening the country’s digital connectivity and mobile network resilience,” Emmanuel Jaclot, executive vice‑president and head of infrastructure at La Caisse, said previously. “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.”

Telus rivals Rogers Communications Bell Canada and Quebecor have closely watched the transaction as they consider spinning off parts of their cell networks, The Globe and Mail reported.

Jaclot told the Globe that La Caisse would consider purchasing cell-tower assets from other Canadian wireless carriers if the infrastructure is offered for sale.