Vodafone will acquire 79% of the share capital of MobiFon and 100% of the share capital of Oskar Mobil in the Czech Republic.
The deal is for a cash consideration of nearly US$3.5 billion to be satisfied from Vodafone Group’s cash resources. Vodafone will also be assuming approximately US$0.9 billion of net debt.
Commenting on the acquisitions, Arun Sarin, Chief Executive of Vodafone, said:
“I am delighted that MobiFon and Oskar, both fast growing mobile operators, will become part of Vodafone, where they will benefit fully from the global services and scale benefits that our group can deliver. These acquisitions will create value for our shareholders and will be good for our customers. They are also consistent with our stated strategy of increasing investment in Central and Eastern Europe.”
The Transaction will be immediately enhancing to adjusted earnings per share before acquired intangible amortisation and synergies, will have no impact on Vodafone’s share purchase programme and is not expected to affect Vodafone’s credit ratings.
The Board of TIW is recommending that its shareholders vote in favour of the Transaction. Certain shareholders of TIW (namely certain affiliates of J.P. Morgan Partners LLC, Caisse de depot et placement du Quebec, and AIG Emerging Europe Infrastructure Fund L.P.), who collectively own 33.6% of TIW’s outstanding share capital, have entered into agreements to vote in favour of the Transaction and not to solicit any competing transaction.
The Transaction is conditional on TIW shareholder approval, the receipt of all necessary unconditional regulatory and Canadian Court approvals and certain customary conditions. The Transaction is expected to complete in the third quarter of 2005.
A termination fee of US$110 million will be payable to Vodafone Group by TIW if the TIW Board withdraws or adversely modifies its recommendation of the Transaction and in certain other customary circumstances. UBS Investment Bank is acting as sole financial adviser to Vodafone Group Plc and Vodafone International Holdings B.V
Murdok | Breaking eBusiness News
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