Vodafone Group (LON: VOD) said Thursday that it has finalised the €8 billion sale of Vodafone Italy to Swisscom AG.
The cash deal values Vodafone Italy at a multiple of 7.6 times consensus Adjusted EBITDAaL and approximately 26 times OpFCF for the 2024 fiscal year.
The valuation represents a premium to Vodafone’s trading multiple. It is also the highest OpFCF multiple achieved in any Vodafone transaction over the past decade, according to the company.
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As part of the agreement, Vodafone will continue to provide certain services to Vodafone Italy for up to five years post-completion, with the first-year annual charges estimated at €350 million.
The proceeds from the sale will be directed towards reducing Vodafone Group’s net debt. Additionally, the Board plans to return up to €2 billion to shareholders following the completion of the current buyback programme.
Vodafone Italy was sold by Vodafone Europe B.V., a wholly owned subsidiary of Vodafone Group, to Fastweb S.p.A., a subsidiary of Swisscom AG.
This deal is part of Vodafone’s focus on debt reduction and enhancing shareholder value.
Vodafone shares have risen around 0.5% on Thursday.
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