- Vodafone Group Plc (NASDAQ:VOD) agreed to sell a stake in its towers unit to KKR & Co Inc (NYSE:KKR) and Global Infrastructure Partners at a €16.2 billion ($16.3 billion) valuation.
- The British telecommunications group announced the €32-a-share deal for Vantage Towers AG (OTC:VTAGY).
- Vodafone will move its 81.7% holding in Vantage into a new joint venture with KKR and GIP.
- Also Read: Private Equity Firms Are Flocking To Vodafone's Tower Unit, Valued In The Billions
- The JV will then make a takeover offer for outstanding shares in Vantage.
- The deal represents a premium of 19% to Vantage Towers' 3-month volume weighted average share price.
- Saudi Arabia's Public Investment Fund helped to fund the deal, Bloomberg reports. KKR and GIP competed with various other financial and strategic bidders for Vantage, including a consortium of Spanish telecommunications group Cellnex Telecom SA (OTC:CLLNY) and Singapore's sovereign wealth fund GIC Pte.
- The report added that the telecom operators shift the assets to help raise funds for fiber-optic rollouts and wireless upgrades.
- Price Action: VOD shares traded lower by 2.34% at $12.08 in the premarket on the last check Wednesday.
- Photo Via Company
Vodafone Divests Stake In $16B Tower Business
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