(Alliance News) - Vodafone Group PLC on Wednesday said its Vantage Towers AG spin-off will be worth EUR12.1 billion when it floats in Frankfurt on Thursday.
Shares in the telecommunications firm's former European towers arm will fetch EUR24.00 each. Vodafone said 95.8 million Vantage Towers shares will be placed, netting the FTSE 100 constituent EUR2.3 billion.
"The successful offering implies a market capitalisation of Vantage Towers of EUR12.1 billion," Vodafone said.
"The IPO represents a significant milestone for Vantage Towers as the company continues its commercial focus on deploying the full potential of its market leading tower infrastructure to serve the increasing demand for connectivity across Europe."
Shares in Vantage Towers will begin trading in Frankfurt on Thursday.
"This IPO unlocks value for our shareholders: it demonstrates the value of our towers assets in a 5G world, sets up Vantage Towers to unlock its full potential as a focused independent tower operator, with the proceeds reducing group debt. Eighteen months ago we started the carve out of Vantage Towers as part of our strategy to improve returns on our assets. We have moved at pace and today's successful IPO is the culmination of all that hard work," Vodafone Chief Executive Nick Read said.
By Eric Cunha; ericcunha@alliancenews.com
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Vodafone (VOD)