moorfield wrote:Of more interest is what current VOD shareholders will get from this spin-off, has anyone found anything specific on that? I would be minded to hold some of the new Vantage Towers shares if that were an option next year.
I wonder how long it will be before the financial journos start dubbing it Faulty Towers
Remember, you read that here first.
A £280m dividend paid next year after the AGM to Vantage towers shareholders.
The capital structure and dividend policy will ensure Vantage Towers retains capacity for organic and inorganic growth investments and enable a strong cash distribution policy for shareholders. With a starting leverage of 4x Net Financial Debt / adj. EBITDAaL, Vantage Towers is preserving the strategic flexibility to pursue additional organic and inorganic opportunities, resulting in €1 billion of leverage capacity that can be complemented by the issuance of equity to fund larger opportunities.
This provides Vantage Towers' shareholders with an attractive mix of flexibility to invest in growth opportunities with attractive incremental return on capital and significant ongoing shareholder distribution.
So at the moment (a % of) the VT divi will be going to Vodafone and will help support the Vodafone dividend.
In this announcement an IPO in early 2021 is mentioned:
https://www.investegate.co.uk/vodafone- ... 00039984T/They say:
Vodafone intends to retain a majority stake in Vantage Towers post IPO, given the strategic nature of the tower infrastructure and the potential value creation opportunity. In its role as majority shareholder, Vodafone is committed to supporting Vantage Towers to create value by empowering the management team to drive growth from increasing the utilisation of its existing infrastructure, including with third parties, as well as deploying incremental capital to capture new growth opportunities and efficiencies. Vodafone is also committed to strong corporate governance with appropriate independent Supervisory Board representation, including an independent chairperson for Vantage Towers.
So there will be a minority of shares sold early next year, what happens to those shares is unclear, but I'm guessing sold on the market and the cash used to pay down Vodafone debt. But that's just a guess on my part.