Vodafone has announced the sale of some of its stake in Vantage Towers to Global Infrastructure Partners (GIP) and KKR while also creating a new joint venture with them. Per the deal, the tower unit is worth €16.1 billion ($16.1bn). The sale also sees Vodafone receive €3.2 billion ($3.2bn) minimum in cash. Vodafone plans to use the sale proceeds to settle its debt. The deal is subject to regulatory approval. The deal is expected to be completed in H1 of 2023.
Vodafone could also see the deal rise up to €7.1 bn ($7.1bn). However, this depends if GIP and KKR decide to activate the voluntary takeover offer that will see them increase their stake in the joint venture to 50%. Vodafone’s take in Vantage Towers currently stands at 81.7%. However, this figure will be reduced after the completion of the sale deal.
Nick Read, Vodafone Group’s chief executive, commented on the deal. He said: "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 for the Group to support our priority of deleveraging."
