Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Mole, I think the wholesale jv is commercially the right thing. I think it may lead to margin % dilution if the roll out is succesful but will drive material revenue growth and materially increase absolute cash (fcf) with well controlled capital investment. Focus is 80% on the existing footprint so I dont expect expensive access costs
Dont know why everyone is particularly negative today although we are in the Halloween season imho
Thanks Dan, Robleo,
As far as VOD goes, I am a sentimental old hector and an old fool. I am sure we are worrying unnecessarily. After all, Liz Truss was director of economics at CW and that must count for something :-)
'The Vodafone (LSE: VOD) share price has fallen 25% since its 52-week high in February. And over the past five years, it’s down more than 50%. I’m looking at Vodafone as a buy candidate now.
I think Vodafone shares have been overpriced in the past, and part of the recent fall has been a much-needed correction. But it looks overdone.
What do I most like about Vodafone? Its dividend yield, now pushed as high as 7.5%.'
https://uk.yahoo.com/finance/news/does-vodafone-share-price-fall-112000356.html
Mole, that makes sense and yes too simplistic [eg capital asset pricing model etc].
A decent half year earnings report and confirmation of outlook on Nov 15 will confirm VOD ability to cover higher interest payments. An increase in the interim dividend payment would help with the message.
target 215p according to LSE broker ratings above
https://www.marketscreener.com/quote/stock/VODAFONE-GROUP-PLC-15867071/news/VODAFONE-Deutsche-Bank-reiterates-its-Buy-rating-42017592/
Great stuff.
'As part of the Transaction, Vodafone is expected to receive cash proceeds from Altice of up to €1.2 billion, comprising:
· An upfront payment of €120 million at closing;
· Additional deferred payments of up to €487 million (in aggregate) to be paid as the Roll-out progresses (once the first 1.5 million homes have been passed and until the end of the Roll-out), and
· An earn-out of up to €595 million (in aggregate) based on FibreCo's performance.
Over the Roll-out period, FibreCo intends to invest up to c.€7 billion, of which 70% is expected to be financed by debt that will be non-recourse to Vodafone and Altice. Vodafone's share of equity contributions is expected to be lower than the cash proceeds realised over time.'
Cevian sold most of its stake at the end of june. Looking at their strategy on their website they probably had c0.5% stake.
VOD got a better agitator/investor when Niel subsequently came on board with 2.5% stake.
Lots of postives too...'
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https://www.ft.com/content/4be57a17-216f-43b0-b616-c972266f39bc
Recent activity suggests Read is making good on his ambition to pursue deals. In August, Vodafone agreed to sell its Hungarian business for $1.8bn and earlier this month confirmed it was in advanced talks with CK Hutchison, owner of Three, to combine their UK businesses and create the biggest mobile operator in Britain. It also announced a deal to buy MasMovil’s telecoms assets in Portugal, and hired bankers to help look at selling its broadband business in Spain.'
...and of course Vantage at the right price could also be a white swan event any time soon...15 November ideally. Chin up chaps!
Sad to say, final salary pension beneficiaries dont live forever so there must be an actuarial adjustment going the other way where the schemes have been withdrawn. In the meantime public sector schemes apparently alive and well and in need of trusty investments like Vantage imho
'where is written 2.2B thanks'
In the ' this is money' link within article. See below
That would allow it to remove £2.2billion of Vantage's debt from its balance sheet and bring in more than £6billion in cash proceeds, according to analysts at City firm Bernstein. It could add 13.2p to the share price, currently £1.08, Bernstein said.
https://www.thisismoney.co.uk/money/markets/article-11246211/Vodafone-looking-sell-large-stake-12bn-phone-masts-division.html
VODs sale of [half] its holding in Vantage could remove £2.2billion of Vantage's debt from its balance sheet and bring in more than £6billion in cash proceeds. There is also the sale of the Hungarian business for £1.6Bn and the UK merger possible by year end.
Think we only need a decent earnings report and this will head north at speed imho.
Half Year FY23 results 15 November
https://www.datacenterdynamics.com/en/news/vodafones-vantage-towers-unit-sees-potential-bidders-line-up/
Liquidity profile,
Dont forget, half of that is hybrid buybacks
Strong liquidity position
Net cash position = €10.1 billion
Unused facilities = €7.6 billion
Maintain target of 2.5-3.0x leverage
No short-term refinancing requirements
https://investors.vodafone.com/debt-investors/financing-strategy
Yeah, its an exciting phase with regular news and maybe an RNS landing soon. ex div end next month too. Feels like more positives than negatives despite the macro gloom
(Bloomberg) -- American Tower Corp. is weighing entering the race for a stake in Vodafone Group Plc’s €13 billion ($12.6 billion) wireless towers unit, people familiar with the matter said.
The US telecommunication infrastructure operator is exploring a possible investment in Frankfurt-listed Vantage Towers AG, the people said, asking not to be identified discussing confidential information.
Vodafone plans to sell part of its roughly 82% interest in Vantage and has invited suitors to participate in an auction process. Private equity firms KKR & Co., Global Infrastructure Partners and EQT AB are already in the running, Bloomberg News reported last month. Spain’s Cellnex Telecom SA has also studied the feasibility of an offer, the people said.
Deliberations are ongoing and there’s no certainty that American Tower or Cellnex will decide to bid. Some of the interested parties may decide to form consortiums and other suitors could also emerge, according to the people. Vodafone expects bids to be made as soon as next week and may announce a new partner for Vantage next month, they said.
Representatives for Cellnex, Vantage and Vodafone declined to comment, while a spokesperson for American Tower didn’t immediately respond to requests for comment.
Europe’s phone carriers have started to sell off infrastructure assets to raise money for investments in costly fiber-optic rollouts and wireless network upgrades, as well as to cut their large debt piles. In July, Deutsche Telekom AG agreed to sell a majority stake in its towers unit to Brookfield Asset Management Inc. and DigitalBridge Group Inc. in a deal valuing the business at €17.5 billion. Cellnex was also bidding for the asset before dropping out.
These assets, which carriers once saw as vital to their business models, are attractive to investment firms thanks to their steady, predictable returns.
https://www.bnnbloomberg.ca/american-tower-weighs-offer-for-stake-in-vodafone-towers-unit-1.1829591