Vodafone Group has sold an additional 10% stake in Vantage Towers for €1.3 billion (R26 billion) as part of its strategy to reduce debt.
This sale is in line with a deal announced in November 2022, when Vodafone agreed to sell a portion of its Germany-based tower company at €32 per share to KKR & Co. and Global Infrastructure Partners (GIP).
According to the terms of the agreement, Vodafone transferred its 81.7% stake in Vantage Towers to a joint venture with KKR and GIP, known as Oak Holdings, and has been gradually reducing its stake ever since.
With the latest sale, Vodafone’s total proceeds from the deal have reached €6.6 billion (R131 billion), the company announced on Monday.
This transaction reduces Vodafone’s ownership in Oak Holdings to 50%, fulfilling the consortium’s original plan.
European telecom operators are exploring ways to raise funds as they struggle to generate returns on their capital investments. Many have sold stakes or entire infrastructure operations to generate cash.
Vodafone’s CEO Margherita Della Valle, who took on the role last year, has been focusing on divesting underperforming markets and streamlining the company’s extensive operations, which once spanned from the US to Africa.
Her turnaround strategy includes selling off Vodafone’s Spanish and Italian businesses and pursuing a merger with CK Hutchison’s Three, which is currently under review by the UK competition authority.
Main Image: Telecoms.com
