Vodafone to Create Europe’s Largest Tower Company: TowerCo

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Vodafone announced they will form a new company for their infrastructure assets, 61,700 towers strong, called TowerCo (no relation to the American company of the same name), making it the largest of its kind in Europe. They said they expect the new company will be operational by May 2020. Preparations are underway for a variety of monetization alternatives, to be executed during the next 18 months, depending on market conditions, including a potential IPO of TowerCo.

“Building on our position as Europe’s largest converged operator, we are now creating Europe’s largest tower company,” said Vodafone’s CEO, Nick Read. “Given the scale and quality of our infrastructure, we believe there is a substantial opportunity to unlock value for shareholders while capturing the significant industrial benefits of network sharing for the digital society. We are focused on executing this strategic priority over the next 18 months.”

Over 75 percent of the towers owned by TowerCo will be in Vodafone’s key markets of Germany, Italy, Spain and the UK with annual revenues of around US $2.1B (€1.7 billion). EBITDA is expected to reach US $1.1M (€900 million) in its first year of operation.

July 29, 2019

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