Vodafone agrees Vantage Towers JV with GIP, KKR

Vodafone said on Wednesday that it has agreed a joint venture deal with infrastructure fund manager Global Infrastructure Partners (GIP) and private equity firm KKR to hold its 81.7% stake in Vantage Towers, valuing the mobile towers business at €16.2bn.

As part of the agreement, Vodafone will contribute its shares in Vantage Towers into the JV by way of a capital increase against new JV shares. The consortium will obtain a shareholding in the JV of up to 50% by acquiring JV shares from Vodafone for cash.

The joint venture will 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, Vodafone said.

Vodafone will receive minimum net cash proceeds of €3.2bn and a maximum of €7.1bn, 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%.

At 0950 GMT, shares in Frankfurt-listed Vantage Towers were up 10% at €31.84.

Vodafone chief executive Nick Read said: "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 expertise in digital infrastructure and share our long-term vision for Vantage Towers as we collectively take the business to the next stage of its growth."