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).
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.
Vodafone initially moved its 81.7% holding in Vantage Towers into a joint venture with KKR and GIP, named Oak Holdings.
Vodafone has been progressively selling its stake, with total proceeds from the deal reaching €6.6 billion.
After the latest sale, Vodafone now holds a 50% stake in Oak Holdings, aligning with the consortium's original vision.
The sale is part of Vodafone's strategy to reduce its significant debt burden amid financial challenges in the telecom sector.
European telecom operators, including Vodafone, are selling stakes or entire infrastructure operations to raise funds.
The turnaround plan involves divesting underperforming markets and focusing on core operations, including exits from Spanish and Italian markets.
The strategy includes an attempted merger with CK Hutchison’s Three, currently under review by the UK competition authority.
The sale of the Vantage Towers stake underscores Vodafone’s commitment to reducing debt and streamlining operations.
By focusing on core markets and partnerships, Vodafone aims to strengthen its financial position and invest in future growth opportunities.