Vodafone Plans Frankfurt IPO for Vantage Towers by End of March -- Update
--Vodafone said offering will consist of sell-down of existing
--Timing of flotation remains subject to market conditions
--Brokerage Numis estimated Vodafone could raise up to EUR4
By Adria Calatayud
Vodafone Group PLC said Wednesday that it intends to list its
European telecommunications-infrastructure unit, Vantage Towers, on
the Frankfurt Stock Exchange by the end of March.
The U.K. telecommunications group said the offering will consist
solely of a secondary sell-down of existing shares held by the
parent, and that the planned IPO seeks to target a meaningful
minority free float.
Vodafone said the timing of the IPO is subject to market
The move is set to help Vodafone in its efforts to cut debt by
tapping into investors' appetite for
telecommunication-infrastructure assets, a market that has been
heating up in recent months.
Orange last week said it would establish a European tower
company by the end of the year. Meanwhile, tower specialist Cellnex
Telecom SA has been on a buying spree, and U.S. peer American Tower
recently boosted its European presence with a deal to buy 23,800
tower sites in Germany and Spain from a unit of Telefonica SA.
Brokerage Numis on Tuesday estimated Vodafone could raise
between 3 billion and 4 billion euros ($3.65 billion-$4.86 billion)
from listing a minority stake in Vantage Towers.
Vodafone said Vantage Towers --which has a portfolio of around
82,000 tower sites across 10 European countries-- is set to benefit
from strong and resilient underlying demand within a growing towers
market, which is mature in the U.S. but still in the early stages
of its evolution in Europe.
"We will be looking to capture the exciting value-creating
opportunities the sector has to offer and to build on our position
as a leading tower infrastructure company in Europe," Vantage
Towers Chief Executive Vivek Badrinath said.
For the nine months to Dec. 31, Vantage Towers generated
adjusted earnings before interest, taxes, depreciation and
amortization after leases of EUR394 million, with a margin of 54%.
The business is targeting a mid-single digit revenue compound
annual growth rate and adjusted Ebitda after leases margin in the
high-fifty percentages over the medium term, Vodafone said.
Vodafone and Vantage Towers have hired Bank of America, Morgan
Stanley and UBS as joint global co-ordinators, and Barclays,
Berenberg, BNP Paribas, Deutsche Bank, Goldman Sachs and Jefferies
as joint bookrunners.
Write to Adria Calatayud at firstname.lastname@example.org
(END) Dow Jones Newswires
February 24, 2021 03:13 ET (08:13 GMT)
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