Vodafone agrees to acquire Tele2 Italy and Tele2 Spain for EUR775m
Mobile communications company Vodafone Group plc (Vodafone) (NYSE:VOD) has announced that it has agreed to acquire Tele2 Italia SpA (Tele2 Italy) and Tele2 Telecommunication Services SLU (Tele2 Spain) from Tele2 AB Group, for a cash consideration of EUR775m, on a debt free basis.
Tele2 Italy and Tele2 Spain provide nationwide fixed-line telecomms and broadband services. Tele2 Italy had over 2.6m customers, including more than 400,000 broadband customers, as of 30 June 2007, while Tele2 Spain had 550,000 customers, including over 240,000 broadband customers.
The acquisition will allow Vodafone to benefit from the broadband markets in Italy and Spain, with the capital expenditure requirements of Tele2 Italy and Tele2 Spain not expected to materially affect the company's ongoing capital intensity ratio in its Europe region.
According to Vodafone, the acquisition meets the company's stated financial investment criteria and is expected to be broadly neutral to adjusted earnings per share in the first full year following acquisition, excluding the impact of acquired intangible asset amortisation.
Vodafone claimed the transaction will generate significant time-to-market benefits in both countries, where broadband penetration is currently low, but is reportedly increasing quickly.
Published in Telecomworldwire.
M2 Communications Ltd