Swisscom, active in Italy with Fastweb, is ready to buy Vodafone Italia for 8 billion euros after the Anglo-Saxon group recently rejected Iliad's purchase proposal.
The Swiss telecommunications group has confirmed that it is in advanced exclusive negotiations with Vodafone for the cash acquisition of 100% of Vodafone Italia.
The goal is to merge the company with Fastweb.
“Although the full terms of the transaction have yet to be defined, Swisscom and Vodafone have agreed a preliminary purchase price for Vodafone Italia of 8 billion euros on a cash and debt free basis,” it said in a statement.
"Swisscom confirms that it is in advanced exclusive negotiations with Vodafone for the cash acquisition of 100% of Vodafone Italia. The Swiss group intends to merge Vodafone Italia with Fastweb, Swisscom's affiliate in Italy" we read in a note.
"Although the full terms of the transaction have yet to be defined, Swisscom and Vodafone have agreed a preliminary purchase price for Vodafone Italia of 8 billion euros on a cash and debt free basis" continues the statement issued after the press leaks.
Vodafone would have preferred the Swiss to the French Iliad due to the greater component in contacts of the offer put on the table by the former.
The potential transaction is expected to be accretive to the value and cash flow of Swisscom and that, following the acquisition, the latter will maintain at least an "A" corporate rating and that there will be a positive impact on its dividend policy, we read further in the note.
For ten years - recalls the Swiss telecommunications operator - Fastweb has been continuously growing in terms of customers, revenues and adjusted Ebitda and has established itself as a leading operator in the fourth largest European broadband market.
The planned merger between Vodafone Italia and Fastweb "would bring together high-quality mobile and fixed infrastructure, complementary expertise and capabilities to create a leading convergent company. The larger size, more efficient cost structure and significant synergy potential would enable the entity combined to unlock value for all stakeholders. The transaction would be a key step in enabling Swisscom to realize its strategic objective of creating long-term value in Italy."
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