Vodafone Divests Stake In $16B Tower Business

  • Vodafone Group Plc VOD agreed to sell a stake in its towers unit to KKR & Co Inc KKR and Global Infrastructure Partners at a €16.2 billion ($16.3 billion) valuation.
  • The British telecommunications group announced the €32-a-share deal for Vantage Towers AG VTAGY.
  • Vodafone will move its 81.7% holding in Vantage into a new joint venture with KKR and GIP. 
  • Also Read: Private Equity Firms Are Flocking To Vodafone's Tower Unit, Valued In The Billions
  • The JV will then make a takeover offer for outstanding shares in Vantage.
  • The deal represents a premium of 19% to Vantage Towers’ 3-month volume weighted average share price.
  • Saudi Arabia's Public Investment Fund helped to fund the deal, Bloomberg reports. KKR and GIP competed with various other financial and strategic bidders for Vantage, including a consortium of Spanish telecommunications group Cellnex Telecom SA CLLNY and Singapore’s sovereign wealth fund GIC Pte.
  • The report added that the telecom operators shift the assets to help raise funds for fiber-optic rollouts and wireless upgrades.
  • Price Action: VOD shares traded lower by 2.34% at $12.08 in the premarket on the last check Wednesday.
  • Photo Via Company
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