Canadian telco Telus has narrowed down its list of potential buyers for a stake in its cellphone tower network.

As reported by The Globe and Mail, the list has been slimmed down to three large domestic asset managers, in a transaction potentially worth CA$1.2 billion (US$870 million).

It was reported back in March that the company was exploring a sale in an effort to trim its debt and also fund its growth plans.

Telus is looking to sell a 49 percent stake in its 3,000-strong tower network.

Globe and Mail reports that the company has shortened its list to Ontario Municipal Employees Retirement System (OMERS), the infrastructure arm of Toronto-based Brookfield Corp., and British Columbia Investment Management Corp. (BCI).

The asset managers are bidding approximately CA$1.2bn (US$870m) for a minority holding in the towers. Telus plans to spin out the unit as a new company called Terrion.

Other companies thought to be interested in buying a stake included US tower company, SBA Communications, which the Globe and Mail reported had held talks with Telus and its bankers before deciding against an offer.

Two other big US tower companies, American Tower Corp. and Crown Castle Inc., also decided not to bid for the Telus network because they would not be able to dictate how it is run.

In May, Telus outlined plans to invest more than CA$70 billion (US$50.6bn) to expand and upgrade its network infrastructure and operations over the next five years.

The investment will support sovereign AI data centers in British Columbia and Quebec, plus the expansion of wireless coverage in rural areas, and a focus on reducing GHG emissions.

The network expansion includes the expansion of Telus’ 5G and LTE services to more than 500 macro and micro sites across the country this year.

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

Earlier this year, domestic rival Rogers Communications agreed to sell a 49.9 percent stake of its wireless network to Blackstone worth CA$7 billion (US$4.9bn).

As part of the agreement, Blackstone will acquire a non-controlling interest in a new Canadian subsidiary of Rogers that will own a minor part of Rogers’ wireless network.