|
Vodafone Group PLC on Wednesday said it has reached a deal to create a joint venture with KKR & Co and Global Infrastructure Partners to hold its listed stake in Vantage Towers AG.
The Berkshire, England-based technology communications company said it will receive minimum net cash proceeds of €3.2 billion for its 82% stake.
Its holding in Vantage Towers will be deconsolidated.
The KKR and GIP consortium will make a voluntary takeover offer for outstanding Vantage Towers shares held by minority shareholders, funded through new debt in the joint venture and equity from both companies.
Vodafone said it would make maximum net cash proceeds between €5.8 billion to €7.1 billion.
Proceeds will depend on the take up in the voluntary takeover offer.
They are subject to GIP and KKR raising further equity before closing to increase their stake in the venture to 50%, reducing leverage by 0.4x to 0.5x.
Vodafone valued the deal at €32.0 per share, at a premium of 19% to Vantage Towers' 3-month volume-weighted average share price.
Chief Executive Nick Read said the agreement was a "landmark moment" for both Vodafone and Vantage Towers.
The transaction allows Vodafone to retain co-control over an important asset, he said, while also deconsolidating it from the company balance sheet to "generate substantial upfront cash proceeds for the group to support our priority of deleveraging".
Looking ahead, Vodafone and the consortium intend to accelerate growth and create further value at Vantage Towers.
Capturing additional co-location opportunities from new and existing third-party customers and enhancing profitability through continuous operational improvements are just some of their aims for the company.
The transaction is conditional on regulatory clearances. It is expected to close in the first half of 2023.
Vodafone shares were trading 1.6% lower at 104.52 pence each in London on Wednesday morning.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
