Vodafone sells stake in its towers

Author: EIS Release Date: Nov 16, 2022

Vodafone is selling a stake in Vantage Towers, which builds, owns and operates its mobile phone masts.

 

Vodafone will move its 81.7% holding in Vantage Towers into a jv with KKR and GIP with funding from  Saudi Arabia’s Public Investment Fund.

 

Vodafone is then expected to sell 50% of its stake in the jv.

 

The JV will  make a takeover offer for the 18% of  shares in Vantage which it doesn’t own..

 

“This transaction successfully delivers on Vodafone’s stated aims of retaining co-control over a strategically important asset, deconsolidating Vantage Towers from our balance sheet to ensure we can optimize its capital structure and generate substantial upfront cash proceeds,”  said Vodafone CEO Nick Read.

 

Vodafone IPO’d the Vantage Towers unit in March last year at €24 a share. This offer for the 18% of outstanding shares is at €32 a share valuing the business at €16.2 billion.

 

It is estimated that the deal could raise €5.8 billion for Vodafone.

 

Deutsche Telekom sold its towers earlier this year for €17.5 billion. Other planned sales of towers are by TDF of France and  Ooredoo QPSC of Qatar.