22nd Jul 2024 09:12
(Alliance News) - Vodafone Group PLC on Monday said it has cut its stake in European mobile phone tower operator Vantage Towers, achieving a planned 50-50 joint ownership structure.
The Newbury, Berkshire-based telecommunications provider said it sold a further 10% stake in Oak Holdings, the partnership that co-controls Vantage Towers, for EUR1.3 billion, at EUR32 per share. Oak owns just over 89% of Vantage Towers.
"This takes the total net proceeds to Vodafone from the sell down in Vantage Towers to EUR6.6 billion," Vodafone said.
"This further sale achieves the 50:50 joint ownership structure with the consortium of long-term infrastructure investors led by Global Infrastructure Partners and KKR that was envisaged when the co-control partnership was first announced," Vodafone added in a statement on Monday.
Proceeds from the sale will be used for deleveraging and will reduce net debt over adjusted earnings before interest, tax, depreciation, amortization, and adjusted loss by 0.1x. This is in line with Vodafone's target of operating in the lower half of its 2.25x to 2.75x leverage range.
Dusseldorf, Germany-based Vantage Towers was a subsidiary of Vodafone before being spun off as a separate company listed in Frankfurt in early 2021. In 2022, Vantage Towers was taken private again by Vodafone and its partners.
Shares in Vodafone were down 0.2% at 70.33 pence each in London in early trading on Monday.
By Jeremy Cutler, Alliance News reporter
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