Vodafone Group Plc ( VOD ) shares are trading higher in premarket today. The telecommunications company has sold an additional 10% stake in Oak Holdings GmbH, the partnership co-controlling Vantage Towers, for 1.3 billion euros ($1.4 billion).

This sale finalizes the 50:50 joint ownership structure with the consortium led by Global Infrastructure Partners and KKR & Co ( KKR ) .

Vodafone will receive €1.3 billion from this transaction, sold at €32 per share, matching the initial deal announced on November 9, 2022, bringing the total proceeds from selling Vantage Towers shares to €6.6 billion.

The proceeds will be used to reduce Vodafone’s debt, lowering the Net Debt/Adjusted EBITDAaL by 0.1x.

This aligns with Vodafone’s goal to operate within the lower half of its 2.25x – 2.75x leverage range.

Also Read: Vodafone Offloads India’s Indus Towers Stake To Trim $2.3B Debt

Since taking over as CEO, Margherita Della Valle has aimed to streamline Vodafone’s operations. Her strategy includes selling underperforming markets and attempting a merger with CK Hutchison’s Three, currently under U.K. competition review, reported Bloomberg.

European telecom operators, including Vodafone, are finding innovative ways to generate revenue amid challenging capital investment returns, with many opting to sell parts of their infrastructure.

Vodafone stock has lost about 8% in the last 12 months. Investors can gain exposure to the stock via First Trust NASDAQ Technology Dividend Index Fund ( TDIV ) and Pacer Global Cash Cows Dividend ETF .

Price Action: VOD shares are trading higher by 1.11% at $9.13 in premarket at last check Monday.

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