Renta 4 |Vodafone could be waiting to receive offers for its stake in Vantage Tower in which it controls 81%, according to Reuters. Vantage manages 83,000 towers in 10 countries and currently has a market cap of 12.5 billion euros.
According to the press, Cellnex and American Tower would be weighing up the idea of presenting an offer for the above-mentioned stake.
Valuation:
In acquisition transactions of this kind, Cellnex is always looking to take control of the assets. So this deal could fit in with its strategy, as well as allowing it to consolidate its position in different countries and providing entry to Germany. The company has financing possibilities for this potential operation without having to hike capital which it already ruled out in its failed bid for Deutsche Telekom’s towers business (sale of minority stakes in some of the assets they control, incorporation of a financial partner, available liquidity of over 7.5 billion euros). We will see if these rumours are confirmed and how the share price reacts.
We reiterate our positive view on the stock. Overweight, Target Price 78 euros/share.
