Infrastructure Funds approach Vodafone’s Vantage Towers

On Friday, reports revealed that global infrastructure funds looked to invest in Vodafone’s $16.00 billion huge company, Vantage Towers.

Accordingly, the bidders included investment firms Brookfield and Global Infrastructure Partners (GIP).

In recent weeks, they have submitted unsolicited proposals valuing Vantage Towers at a premium to its current valuation.

However, the British Telecom giant still examines the offers and has not decided yet. Last year,

Vodafone listed the huge German company in Frankfurt and still owns 81.00% of the business.

Since then, it has been reluctant to talk with financial investors as it seeks to clinch an industry merger.

The company aims to ink a deal for Vantage with either Deutsche Telekom’s towers unit DFMG or Orange’s Totem.

Moreover, Vodafone, the world’s second-largest mobile operator, faces pressure from Europe’s most prominent activist fund, Cevian Capital.

The Swedish investment firm asks the business to simplify its portfolio, enhance its strategy in key markets and boost returns.

In line with this, a deal for its towers business would align with these stated demands.

This possible move will come after the London-listed company turned down an $12.17 billion approach for its Italian operations last month.

The company rejected France’s Iliad and Apax Partners, noting that the offer was not in the best interests of shareholders.

Meanwhile, its ambitions to consolidate the Spanish market hit a snag in early March.

This is after Orange and MasMovil unveiled exclusive talks to combine their respective businesses in Spain.

Furthermore, telecoms have repeatedly called for market consolidation to reduce competition.

The mergers would also boost operators’ profitability as they invest in the 5G mobile infrastructure rollout.

Meanwhile, the latest news on Vodafone sent its stock price to an upturn of 1.35% or 2.23 points to $167.68 per share.

Vodafone targets industrial merger for Vantage

Vodafone CEO Nick Read repeatedly mentioned that the next stage for the Vantage Towers should be an industrial merger.

The company anticipated the plan to bring its telecom towers with another significant player.

Earlier this month, Deutsche Telekom started the sale process of its towers business. Eventually, reports stated that Vodafone closely monitors the said auction.

In line with this, the firm is more likely to pursue a deal with Orange’s Totem due to antitrust concerns in Germany.

Meanwhile, Spain’s Cellnex and US-based American Tower Corp. are also looking for infrastructure deals.

These independent tower operators race to expand in Europe for the roll-out of next-generation 5G technology.

In the past years, telecom towers, burdened by heavy debt and huge costs, have been the target of several big takevodafoovers.