Vodafone Buys Greek Landline Operator
Published on: 25th Aug 2014
Vodafone is paying EUR72.7 million to buy a near 78 percent stake in Hellas Online, a Greek landline and broadband internet provider.
The Transaction values the company at EUR100 million and is equivalent to an enterprise value of EUR311 million including HOL's adjusted net debt of EUR211 million .
HOL is a provider of broadband and fixed-line telephony in Greece with around 519,000 customers as at 31 December 2013, representing a market share of approximately 11% .
The Transaction builds on the cooperation between Vodafone Greece and HOL since 2009, when Vodafone Greece became an 18.5% shareholder, and accelerates Vodafone's unified communications strategy in Greece.
The Transaction is expected to complete in calendar Q4 2014, following which Vodafone Greece would own 91.2% of HOL and be under an obligation to extend a mandatory takeover offer for the remaining shares in HOL.
Vodafone expects to achieve cost and capex synergies with an annual run-rate of EUR24 million before integration costs by the third full year post completion, equivalent to a net present value of approximately EUR135 million after integration costs.
These synergies are expected to be realised from sharing network and IT infrastructure, savings on marketing and bill collections, and rationalisation of overlapping functions.