Vodafone Group has sold an additional 10% stake in Vantage Towers for 1.3 billion euros. This decision aligns with the company’s operational targets. The proceeds aim to reduce its net debt to adjusted EBITDAaL by 0.1x. Oak Holdings, which co-controls Vantage Towers, now owns 89.3% of the company, while Vodafone retains 44.7%.
Vantage Towers boasts a portfolio of 84,600 macro tower sites across ten European countries, including ground-based and rooftop structures. They also provide small cell and distributed antenna systems for enhanced indoor coverage and capacity.
Historically, Vodafone has been scaling down its ownership in Vantage Towers. In November 2022, Global Infrastructure Partners (GIP) and KKR core infrastructure funds took co-control of the assets. Altogether, the sales have generated 6.6 billion euros ($7.2 billion) for Vodafone.
Last month, Vodafone sold 484.7 million shares in Indian tower company Towers, raising INR153 billion ($1.83 billion). The proceeds from this sale will primarily repay Vodafone’s existing lenders. Following the sale, Vodafone holds a 3.1% share in Indus Towers, which equals 82.5 million shares.
This divestment strategy appears to strengthen Vodafone’s financial position, enabling it to focus on reducing debt. However, decreasing ownership in important infrastructure assets might limit the company’s future control over key operational capabilities.
