Vodafone have announced they are to float their European mast business in early 2021, which has been renamed Vantage Towers.
The telecoms giant intends to keep a majority stake in the Vantage Business, which will cover over 68,000 towers across nine markets.
Vodafone also announced that they have created Greece’s largest tower business by sealing a deal with Crystal Almond.
Crystal Almond are to acquire €100m of shares in the Vantage initial public offering (IPO), the company confirmed.
Nick Read, group chief executive of Vodafone, said this will create “Europe’s leading tower infrastructure company,” which marks “significant progress” in the company’s growth strategy.
Read added, “Our trading performance in the first quarter demonstrates the relative resilience of our operating model and focused delivery of our strategic priorities.
“Whilst we have seen the direct impact on our revenue from travel restrictions and business project delays, we have also seen increased usage in voice and data, alongside record broadband customer net additions in Europe.”
William Ryder, equity analyst at Hargreaves Lansdown said, “Vodafone will be losing some attractive assets when it sells Vantage Towers, but management thinks shareholders will get more for their money if the towers can be valued separately through an IPO.
“Vodafone’s debt burden is also higher than we’d like it to be, so any cash from the sale can go towards reducing this.”
Investors were informed on Friday that during the first quarter of the financial year, Vodafone was hit by the pandemic, which saw projects being delayed.
Revenue slipped by 1.4% to €10.51bn, in the period to 30 June, but they are on track to deliver €400m in spending cuts across Europe.