Vodafone Sells €1.3 Billion Stake in Vantage Towers to Reduce Debt

Vodafone Group Plc sold a 10% stake in Vantage Towers for €1.3 billion ($1.4 billion).

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The sale is part of a broader agreement announced in November 2022 to sell stakes in the German tower company at €32 per share to KKR & Co. and Global Infrastructure Partners.

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Vodafone initially moved its 81.7% holding in Vantage Towers into a joint venture with KKR and GIP, named Oak Holdings.

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Vodafone has been progressively selling its stake, with total proceeds from the deal reaching €6.6 billion.

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After the latest sale, Vodafone now holds a 50% stake in Oak Holdings, aligning with the consortium's original vision.

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The sale is part of Vodafone's strategy to reduce its significant debt burden amid financial challenges in the telecom sector.

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European telecom operators, including Vodafone, are selling stakes or entire infrastructure operations to raise funds.

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The turnaround plan involves divesting underperforming markets and focusing on core operations, including exits from Spanish and Italian markets.

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The strategy includes an attempted merger with CK Hutchison’s Three, currently under review by the UK competition authority.

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The sale of the Vantage Towers stake underscores Vodafone’s commitment to reducing debt and streamlining operations.

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By focusing on core markets and partnerships, Vodafone aims to strengthen its financial position and invest in future growth opportunities.

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