Vodafone formed a joint venture with a consortium of long-term infrastructure investors led by Global Infrastructure Partners (GIP) and KKR to hold and manage Vodafone’s 81.7% stake in Vantage Towers AG.
Vodafone will contribute its shares in Vantage Towers into the JV by way of a capital increase against new JV shares. The Consortium will obtain a shareholding in the JV of up to 50% by acquiring JV shares from Vodafone for cash.
The deal has a valuation of €32.0 per share, a premium of 19% to Vantage Towers’ 3 month volume-weighted average share price and a multiple of 26x adjusted EBITDAaL for the 12 month period ended 31 March 2022.
Nick Read, Vodafone Group Chief Executive said: “This is a landmark moment for both Vodafone and Vantage Towers. 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 optimise its capital structure and generate substantial upfront cash proceeds for the Group to support our priority of deleveraging. We are excited to partner with GIP and KKR, both world-class investors who bring significant expertise in digital infrastructure and share our long-term vision for Vantage Towers as we collectively take the business to the next stage of its growth.”
In parallel with this announcement, the JV has announced today that it will make a voluntary takeover offer (“VTO”) for the outstanding Vantage Towers shares held by minority shareholders pursuant to Section 10 of the German Securities Acquisition and Takeover Act.
Vodafone advances plan to spin-off tower business
