Swedish multinational Telia Company has sold 49% of its tower business in Finland and Norway to Brookfield (NYSE: BAM) and Alecta.

The two parties have paid €722 million (around US$857 million at the time of writing) for the large share portion. The proceeds will be retained for deleveraging, Telia said in a statement.

Based on the Q1 2021 financial statements and including the proceeds from the recently closed Telia Carrier transaction with Polhem Infra, this will result in a proforma net debt to EBITDA of around 2.1x.

If, and when, there is a transfer of the tower assets from their respective business units, there will likely be a need for a review of the remaining carrying values of the business units.

Telia Company has the largest tower infrastructure footprint in the Nordics and the Baltics, with approximately 25,000 towers and rooftop sites.

In Finland and Norway, Telia’s tower business is comprised of approximately 4,700 towers with total revenue in 2020 of €88 million and an EBITDA of €56 million (pre IFRS 16).

Brookfield and Alecta are two of the largest owners and operators of real assets in their respective regions.

Combined, they have more than $600 billion of assets under management, a global data infrastructure platform and deep ties to the Nordic region.

Telia Company’s President and CEO Allison Kirkby, said: “Telia is a clear leader in digital infrastructure, owning the largest tower infrastructure footprint, in the Nordics and the Baltics. We are delighted to enter into a strategic partnership with Brookfield and Alecta, to both crystallise immediate value, and more importantly help Telia better develop its infrastructure base.

“Both Telia and Brookfield/Alecta have a long-term industrial view on the role of tower infrastructure as a foundation for continued digitalization of the region.”

The transaction is still subject to customary regulatory approvals and closing is expected to take place in the fourth quarter of 2021.

In connection with closing of the transaction, Telia Company will enter into an anchor tenant agreement with Telia Towers in Finland and Norway, based on today’s price levels, for an initial period of eight years, extended automatically with two extension terms of five years each.

Telia Company has been advised by Goldman Sachs, Roschier, Kvale, EY and Altman Solon.