Fastweb buys 100% of Vodafone Italia for 8 billion. The two companies have reached a binding agreement which will see the activities of the British group merge into Fastweb, the Swiss subsidiary of Swisscom in the country. The agreement should close by the first few months of 2025 and remains subject to the approval of the authorities, in particular the Antitrust authorities, but will not require a vote of Swisscom shareholders. Fastweb and Vodafone then signed a contract that will allow the Swiss group to use the Vodafone brand in Italy for a maximum of five years.
The numbers of the new group
Swisscom will pay Vodafone 8 billion, all in cash and debt financed, and will pay an annual fee for the services and brand provided by Vodafone which will start at 350 million and then decrease over time. The merger of Vodafone Italia into Fastweb will create a group with around 9000 employees, revenues of 7 billion and 33 million mobile customers. The new group will be very strong in particular in business services, so much so that yesterday Iliad – which twice unsuccessfully attempted to buy Vodafone Italia – spoke of the risk of a duopoly being created in this sector in Italy between Tim and the new Fastweb . «This operation marks a turning point for Fastweb and will generate significant value for all stakeholders», underlined Fastweb’s CEO, Walter Renna. «The NewCo will contribute to the evolution of this strategic sector with significant investments in fiber and 5G, innovative ICT services and infrastructure security, thus enabling a rapid digital transformation of families, businesses and the Public Administration».
The words of the CEO of Swisscom
Provided the deal closes at the beginning of 2025, Swisscom intends to increase the annual dividend to 26 francs per share payable in 2026 (for the 2025 financial year), with the ambition of further coupon growth following, supported by the realization of synergies. «Swisscom has been operating successfully in Italy since the acquisition of Fastweb in 2007», said Christoph Aeschlimann, CEO of Swisscom. «The industrial logic of this merger is very solid. Fastweb and Vodafone Italia represent an ideal combination to generate high added value for all stakeholders.”
Vodafone’s exit from Italy
The operation marks Vodafone’s exit from the Italian market, where the British operator entered over 20 years ago by buying Omnitel. «The sale of Vodafone Italia to Swisscom creates significant value for Vodafone and ensures the company maintains its leadership
position in Italy, which has been built thanks to the dedicated commitment of our colleagues in serving our customers over the years”, remarked Margherita Della Valle, CEO of Vodafone. “Our transactions in Italy and Spain will provide €12 billion in cash proceeds and we intend to return €4 billion to shareholders through buybacks, as part of our broader capital allocation review.” The operation must be approved by the group’s shareholders, unless the reform of the British Listing Act provides otherwise. If the shareholders do not agree to the sale of the Italian assets, Vodafone will have to pay Swisscom a penalty of 150 million.
2024-03-15 07:03:29
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