Telus (TU) said Friday it will sell a 49.9% stake in its new Canadian tower operator, Terrion, to La Caisse for $1.26 billion Canadian dollars ($908.7 million).

The deal establishes Terrion as Canada's largest dedicated wireless tower company with about 3,000 sites and is expected to reduce Telus' net debt by the same amount, the company said.

Terrion will lease tower capacity to Telus under an eight-year agreement with renewal options, while Telus keeps 50.1% ownership and consolidates its results, it said.

The partnership enables wholesale access and co-location for other carriers to support national wireless competition, Telus added.

Regulatory approvals and closing are expected by the end of Q3, TELUS said.