Canadian telco Telus has struck a deal to spin off its telecom tower infrastructure.

The company announced that it has entered into an agreement with La Caisse that will see La Caisse acquire a 49.9 percent interest in the newly formed Canadian wireless tower infrastructure operator Terrion for CA$1.26 billion ($870 million).

Montreal-based Terrion will own passive macro wireless infrastructure assets, commonly known as cell towers. In total, the company will operate around 3,000 sites across British Columbia, Alberta, Ontario, and Quebec.

As such, Telus will retain full ownership and control of all active network components and security systems. The carrier will have a 50.1 percent stake in Terrion.

It was reported in March that Telus was considering selling a stake in its tower network.

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

“The establishment of Terrion allows Telus to focus on our innovative service offerings and next-generation connectivity for the benefit of our customers, while enabling Terrion to specialize in infrastructure development, site management, and third-party co-location."

Telus said the deal values Terrion at more than CA$2.5 billion ($1.81m), while the transaction is expected to reduce Telus’ net debt by approximately CA$1.26bn ($910m).

La Caisse also has investments in tower companies across the United States, Europe, and New Zealand.

Founded in 1990, Telus serves more than ten million mobile subscribers across the country. The carrier also sells fiber broadband and TV subscription services.

Telus expects the deal to close by the end of the third quarter, subject to regulatory approvals and other customary closing conditions.