Business
CO-CONTROL PARTNERSHIP FOR VANTAGE TOWERS
CO-CONTROL PARTNERSHIP FOR VANTAGE TOWERS.
About this update from Vodafone Group Public Limited Company
[{"type":"text","content":"\n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n \n \n VODAFONE ENTERS INTO A CO-CONTROL PARTNERSHIP WITH GIP AND KKR\n \n \n \n \n FOR VANTAGE TOWERS\n \n \n \n \n \n \n 9 November 2022\n \n \n \n \n \n · \n Strategic co-control partnership with long-term investors with significant expertise in digital infrastructure to accelerate Vantage Towers' growth and value creation\n \n \n ·\n Creation of a JV with GIP and KKR, to hold Vodafone's 81.7% stake in Vantage Towers which will be deconsolidated by Vodafone\n \n \n ·\n Attractive valuation of €32.0 per share, a premium of 19% to Vantage Towers' 3 month volume-weighted average share price and a multiple of 26x adjusted EBITDAaL for the 12 month period ended 31 March 2022\n \n \n ·\n JV to make a voluntary takeover offer for the outstanding Vantage Towers shares held by minority shareholders, funded through new debt in the JV and equity from GIP and KKR\n \n \n ·\n Minimum net cash proceeds to Vodafone of €3.2 billion, based on equity from GIP and KKR that is fully committed at signing and maximum minority take up in the voluntary takeover offer, which would reduce Vodafone's leverage by 0.2x\n \n \n · \n Maximum net cash proceeds of €5.8-7.1 billion1, depending on the take up in the voluntary takeover offer and subject to GIP and KKR raising further equity before closing to increase their stake in the JV to 50%, reducing leverage by 0.4x-0.5x\n \n \n ·\n Transaction conditional on regulatory clearances and expected to close in the first half of 2023\n \n \n \n \n \n \n Nick Read, Vodafone Group Chief Executive said:\n \n \"This is a landmark moment for both Vodafone and Vantage Towers. This transaction successfully delivers on Vodafone's stated aims of retaining co-control over a strategically important asset, deconsolidating Vantage Towers from our balance sheet to ensure we can optimise its capital structure and generate substantial upfront cash proceeds for the Group to support our priority of deleveraging. We are excited to partner with GIP and KKR, both world-class investors who bring significant expert...