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BCE Sells 49.9% of Its Cell Towers to La Caisse for $2.45 Billion. What It Means for BCE's Debt and Dividend
- BCE announced on October 27 that Bell Canada will sell a 49.9% stake in a new wireless tower company (TowerCo) to La Caisse for C$2.45 billion.
- The deal values TowerCo at about C$4.91 billion. It will hold more than 5,000 of Bell's passive wireless tower sites.
- Bell keeps 50.1%, plus its spectrum and active network equipment, and will keep using the sites under long-term agreements.
- BCE says proceeds will strengthen the balance sheet. It is targeting net debt leverage of 3.5x by the end of 2027.
- Closing is expected in the first quarter of 2027, subject to regulatory approvals.
The deal
BCE said on Tuesday, October 27 that Bell Canada will form a new wireless tower company, called TowerCo, and sell 49.9% of it to La Caisse (formerly the Caisse de dépôt et placement du Québec) for C$2.45 billion.
TowerCo will own more than 5,000 of Bell's passive wireless sites: the steel towers, rooftops and ground leases that hold antennas. Bell keeps 50.1%, its spectrum licences and its active equipment like radios and antennas. Bell will keep renting space on the towers under long-term agreements.
| Detail | Figure |
|---|---|
| Stake sold | 49.9% |
| Price | C$2.45 billion |
| Implied TowerCo value | ~C$4.91 billion |
| Tower sites | 5,000+ |
| Bell's remaining stake | 50.1% |
| Expected closing | Q1 2027 |
Why Bell is doing it
Debt. BCE carries a heavy debt load from years of fibre and 5G spending. It is targeting a net debt leverage ratio of 3.5x by the end of 2027. Selling a minority stake in towers raises cash without losing control of a critical asset.
Towers are worth more to pension funds. Tower companies collect long-term, inflation-linked rent from carriers. That predictable cash flow is exactly what pension funds want, so they often pay higher multiples than the market assigns to a telecom company as a whole.
Canadian precedent. Telus sold a 49.9% stake in its tower company, Terrion, to La Caisse for $1.26 billion. Rogers sold a stake in its wireless backhaul network earlier. BCE's deal is the largest of the three.
What it means for BCE shareholders
The good: C$2.45 billion is a meaningful step toward the leverage target. A stronger balance sheet reduces the risk of another dividend cut and could help BCE's credit rating.
The trade-off: Bell will now pay rent to a company it only half-owns. That raises operating costs and gives away about half of the future tower cash flow. This is a classic "sell an asset to fix the balance sheet" move.
The dividend: BCE cut its dividend in 2025 to fund debt reduction. The company says proceeds will support the balance sheet, growth investment and shareholder returns. Don't assume a dividend increase is coming soon. Our guide to dividend yield vs dividend growth explains why a high yield can be a warning sign.
Why it matters beyond BCE
Canadian telecoms are under pressure from price competition, regulatory changes and high interest rates. Bond yields have risen globally this year, which makes high-debt, high-yield stocks like telecoms and utilities less attractive by comparison.
All three big carriers have now sold infrastructure stakes. That tells you pension funds see value in the physical networks, even as investors in the carriers themselves have struggled.
What it means for you
- If you own BCE: This is a sensible balance-sheet move, not a turnaround. Watch the leverage ratio and free cash flow over the next few quarters.
- If you own a Canadian dividend ETF: BCE is a common holding. One stock shouldn't make or break your income. See our list of top Canadian dividend stocks.
- If you're shopping for yield: Compare telecom yields with what you can earn on GICs and bonds today. The extra yield needs to pay you for the extra risk.
What to watch next
- BCE's Q3 2026 earnings in early November.
- Regulatory approval of the TowerCo deal.
- Any update on BCE's leverage target and dividend policy.
This article is for educational purposes and is not a recommendation to buy or sell BCE.
Frequently asked questions
What did BCE sell to La Caisse?
A 49.9% stake in a newly formed wireless tower company, TowerCo, that will own more than 5,000 of Bell's passive tower sites. La Caisse pays C$2.45 billion. Bell keeps 50.1%, its spectrum and its active network equipment.
How much is Bell's tower company worth?
The C$2.45 billion price for 49.9% values the whole tower company at about C$4.91 billion.
Why is BCE selling part of its towers?
To raise cash and reduce debt without giving up control. BCE is targeting a net debt leverage ratio of 3.5 times by the end of 2027. Tower stakes are attractive to pension funds because they produce long-term, contracted rent.
Does this mean BCE will raise its dividend?
Not necessarily. BCE cut its dividend in 2025 to fund debt reduction and investment. The tower sale supports the balance sheet, but the company has said proceeds will go to debt reduction, growth investment and shareholder returns together, so investors shouldn't assume a quick increase.
When does the BCE tower deal close?
BCE expects closing in the first quarter of 2027, subject to regulatory approvals and customary conditions.
Primary sources
- StockTitan (BCE news release) — BCE announces partnership with La Caisse, which will acquire 49.9% of wireless TowerCo
- MarketScreener — BCE says La Caisse to pay CA$2.45 billion for minority stake in new wireless tower company
- iPhone in Canada — Why Bell is selling nearly half its wireless towers for $2.45B (Oct. 27, 2026)
- BCE Investor Relations
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Oct 28, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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