Vodafone to Spin Off Towers Business

Shares in FTSE 100 telecoms firm surge as it unveils ambitious plans to create a separate company for its European towers and masts infrastructure

James Gard 26 July, 2019 | 10:52AM

Vodafone

Shares in FTSE 100 telecoms firm Vodafone (VOD) surged after announcing plans to separate out its European towers business. The 8% jump in the share price gives some respite to long-suffering Vodafone investors, who have suffered a dividend cut this year and faced a 44% slide in the shares in the last 18 months.

Vodafone plans to create “Europe’s largest tower company” through spinning off its European masts and infrastructure businesses into “TowerCo”. “We believe there is a substantial opportunity to unlock the embedded value of our towers,” Vodafone said, and this could include stock market flotations or sales of assets in individual countries. This involves 61,000 towers in 10 companies and potential profits of just below €1 billion.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BT Group PLC117.90 GBP0.00
LF Miton Global Infrastructure Inc B Acc99.37 GBP-2.38
Vodafone Group PLC109.60 GBP0.00

About Author

James Gard  is content editor for Morningstar.co.uk

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