Voda­fone takes con­trol of HOL

Financial Mirror (Cyprus) - - FRONT PAGE -

Voda­fone, the world’s sec­ond-largest wire­less op­er­a­tor by sub­scriber num­bers, has agreed to buy a ma­jor­ity stake in Hel­las On­line from In­tra­com Group and World Equities In­vest­ments to ex­pand its po­si­tion in the county.

Lon­don-listed Voda­fone Group PLC said it has agreed to ac­quire a ma­jor­ity 73% stake in the tele­com op­er­a­tor for EUR 72.7 mln in cash, tak­ing its to­tal con­trol to 91.2%.

This means that the U.K.-based mo­bile gi­ant, which is sec­ond in wire­less sub­scriber num­bers af­ter China Mo­bile Ltd., will now be obliged to sub­mit a manda­tory takeover for the rest of the shares.

Voda­fone said it ex­pects the deal to com­plete in the fis­cal fourth quar­ter.

HOL, in which Voda­fone has had a mi­nor­ity stake since 2009, has 519,000 broad­band and fixed-line tele­phony cus­tomers with a mar­ket share of 11%. It posted more than EUR 220 mln in rev­enue last year.

Voda­fone is spend­ing bil­lions of dol­lars on net­work up­grades in Europe to shore up its flag­ging wire­less busi­nesses, the Wall Street Jour­nal said, adding that “its op­er­a­tions in south­ern Europe, in par­tic­u­lar, have felt a squeeze from a com­bi­na­tion of price com­pe­ti­tion and a hit on con­sumer spend­ing.”

Voda­fone said it ex­pects to achieve cost and cap­i­tal ex­pen­di­ture syn­er­gies at EUR 24 mln a year be­fore in­te­gra­tion costs by the third full-year af­ter com­ple­tion.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.