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Vodafone Group Plc (LSE: VOD) has announced the sale of an additional 10% stake in Oak Holdings GmbH—the entity co-controlling Vantage Towers—for €1.3 billion. This transaction aligns with the company's strategic goal to achieve a 50:50 joint ownership structure with the consortium of long-term infrastructure investors led by Global Infrastructure Partners and KKR, as initially planned.
Details of the Sale
Vodafone has sold the 10% stake at €32 per share, maintaining the same price as the initial transaction disclosed on November 9, 2022. This sale increases the total net proceeds from Vantage Towers' sell-down to €6.6 billion. The funds received from this sale will be directed towards deleveraging, contributing to a reduction in Vodafone's Net Debt/Adjusted EBITDAaL ratio by 0.1x. This adjustment aligns with Vodafone’s objective to operate in the lower half of its target leverage range of 2.25x - 2.75x.
Impact on Ownership
Following this transaction, Oak Holdings retains 89.3% ownership of Vantage Towers, while Vodafone’s effective stake has been reduced to 44.7%. This change in ownership structure reflects Vodafone's ongoing efforts to streamline its financial position and focus on strategic investments.
Strategic Financial Management
The proceeds from this sale are part of Vodafone's broader strategy to manage its debt levels and enhance its financial stability. By reducing its leverage, Vodafone aims to strengthen its balance sheet and improve its operational efficiency, aligning with the company's long-term financial goals.
