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You can find the current article at its original source at https://www.theguardian.com/business/2019/jul/26/vodafone-standalone-mobile-mast-business-towerco-europe
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| Vodafone to sell off 60,000 mobile masts for €20bn | |
| (about 1 hour later) | |
| Vodafone is to spin off its pan-European mobile mast business with an eye on a stock market flotation worth as much as €20bn (£17.9bn) in the next 18 months. | Vodafone is to spin off its pan-European mobile mast business with an eye on a stock market flotation worth as much as €20bn (£17.9bn) in the next 18 months. |
| Shares in the world’s second largest mobile operator climbed almost 8% as investors relished the prospect of a windfall from a sale or initial public offering of Europe’s largest towers company. | Shares in the world’s second largest mobile operator climbed almost 8% as investors relished the prospect of a windfall from a sale or initial public offering of Europe’s largest towers company. |
| The new standalone business, called TowerCo, will comprise 61,700 towers across 10 countries, with 75% of the sites in principal European markets Germany, the UK, Italy and Spain. | The new standalone business, called TowerCo, will comprise 61,700 towers across 10 countries, with 75% of the sites in principal European markets Germany, the UK, Italy and Spain. |
| Government delays decision on whether to restrict Huawei | Government delays decision on whether to restrict Huawei |
| The business will generate about €1.7bn in revenues and €900m profits, leading analysts to value the business at between €15bn and €20bn, based on valuations of other mast businesses. | The business will generate about €1.7bn in revenues and €900m profits, leading analysts to value the business at between €15bn and €20bn, based on valuations of other mast businesses. |
| “We are now creating Europe’s largest tower company,” said Nick Read, Vodafone’s chief executive. “Given the scale and quality of our infrastructure we believe there is a substantial opportunity to unlock value for shareholders.” | “We are now creating Europe’s largest tower company,” said Nick Read, Vodafone’s chief executive. “Given the scale and quality of our infrastructure we believe there is a substantial opportunity to unlock value for shareholders.” |
| Vodafone does not wholly own all the towers, for example O2 owns half of the 18,500 in its UK joint venture, meaning the company is likely to pocket about €12bn from the eventual sale or flotation. | Vodafone does not wholly own all the towers, for example O2 owns half of the 18,500 in its UK joint venture, meaning the company is likely to pocket about €12bn from the eventual sale or flotation. |
| The new company, which will have its own management team, will be operational by next May. | The new company, which will have its own management team, will be operational by next May. |
| Vodafone began evaluating a spin-off of the towers business last year after receiving several offers for various parts of its portfolio. The company said it intends to monetise a substantial proportion of TowerCo, including looking at a stock market listing or sale of a minority stake, during the next 18 months, depending on market conditions. | Vodafone began evaluating a spin-off of the towers business last year after receiving several offers for various parts of its portfolio. The company said it intends to monetise a substantial proportion of TowerCo, including looking at a stock market listing or sale of a minority stake, during the next 18 months, depending on market conditions. |
| The proceeds will be used to pay down Vodafone’s mounting debt pile, which will reach €48bn when the company completes its €18.4bn deal to buy Liberty Global’s German and eastern European cable assets. | The proceeds will be used to pay down Vodafone’s mounting debt pile, which will reach €48bn when the company completes its €18.4bn deal to buy Liberty Global’s German and eastern European cable assets. |
| Vodafone has also spent €4bn on 5G spectrum as prices ballooned in auctions in Germany and Italy during the past year. | Vodafone has also spent €4bn on 5G spectrum as prices ballooned in auctions in Germany and Italy during the past year. |
| The share price rise will be a boost to Read who has seen the company’s value fall by more than a fifth since he took over the role of chief executive last October. In May, Read was forced to cut Vodafone’s dividend for the first time since it became a standalone business in 1990, despite having initially said he would not do so. | The share price rise will be a boost to Read who has seen the company’s value fall by more than a fifth since he took over the role of chief executive last October. In May, Read was forced to cut Vodafone’s dividend for the first time since it became a standalone business in 1990, despite having initially said he would not do so. |
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