Vodafone takes control of HOL

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.