Vantage Towers plans €1.6 billion of debt with shift to joint venture

By Sara Rosenberg

New York, Nov. 9 – Vantage Towers plans on getting €1.6 billion of incremental debt to help fund the creation of a joint venture with Global Infrastructure Partners and KKR to hold Vodafone Group plc’s 81.7% stake in Vantage Towers, according to a news release.

The debt will be non-recourse to Vodafone.

Other funds for the transaction will come from equity.

Global Infrastructure and KKR will obtain a shareholding in the joint venture of up to 50% by acquiring JV shares from Vodafone for cash.

The joint venture will then make a voluntary takeover offer for the outstanding Vantage Towers shares held by minority shareholders.

The transaction values Vantage Towers shares at €32.0 per share, for a total equity value of €16.2 billion.

Minimum net cash proceeds to Vodafone will be €3.2 billion, which would reduce Vodafone’s leverage by 0.2x, and maximum net cash proceeds will be between €5.8 billion to €7.1 billion, depending on the take up in the voluntary takeover offer and subject to Global Infrastructure and KKR raising further equity before closing to increase their stake in the joint venture to 50%, reducing leverage by 0.4x to 0.5x.

Closing is expected in the first half of 2023, subject to regulatory clearances.

Robey Warshaw and UBS are acting as financial advisers to Vodafone.

Vantage Towers is a Dusseldorf, Germany-based tower company in Europe. Vodafone is an U.K.-based technology communications company.

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