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Posts: 262
Opinion: No Opinion
Posted: May 7, 2019
Vodafone agrees Telefónica Deutschland wholesale deal to secure Liberty merger
LONDON (Reuters) - Vodafone said on Tuesday it had agreed to supply high-speed broadband to Telefónica Deutschland to help secure European Commision approval for its merger with Liberty Global’s cable networks in Germany and Central Europe.
Telefónica Deutschland competes in German mobile with market leader Deutsche Telekom and Vodafone.
Posts: 262
Opinion: Buy
Posted: August 30, 2018
RNS Number : 2005Z
Vodafone Group Plc
30 August 2018
VODAFONE GROUP ANNOUNCES MERGER BETWEEN VHA AND TPG
Vodafone Group Plc ("Vodafone") announces that Vodafone Hutchison Australia Pty Limited ("VHA") and TPG Telecom Limited ("TPG") have agreed a merger to establish a new fully integrated telecommunications operator in Australia ("MergeCo").
The merger brings together leading talent in Australia's mobile and fixed broadband sectors and accelerates the benefits of the substantial network investments made by both companies. The merged company will be a more powerful challenger to Telstra and Optus in Australia, with an integrated fixed and mobile offering. It will also be better able to invest in next generation mobile and fixed networks and drive innovation, service and product improvements to benefit Australian telecoms customers.
Vodafone and Hutchison Telecommunications (Australia) Limited ("HTAL") will each own an economic interest of 25.05% in MergeCo, with TPG shareholders owning the remaining 49.9%. The Board of MergeCo will comprise: David Teoh, as Chairman (currently CEO and Chairman of TPG), Iñaki Berroeta as Managing Director and CEO (current CEO of VHA), existing TPG directors Robert Millner and Shane Teoh, two nominees of Vodafone, two nominees of HTAL, and two new independent directors. MergeCo will be listed on the Australian Securities Exchange (ASX) and called TPG Telecom Limited. There are no changes currently planned to any of the existing brands of either VHA or TPG.
The merger is expected to generate substantial cost synergies from the combination of two complementary networks, rationalisation of duplicated costs and economies of scale. Additionally, the combined entity will benefit from revenue synergies through cross-selling of products across both VHA and TPG's corporate and consumer customer bases.
The agreed merger ratio implies an enterprise value for VHA of A$7.5 billion. This is equivalent to valuing VHA at 7.4x EV/LTM June 2018 EBITDA and 19.2x EV/LTM June 2018 operating free cash flow (OpFCF). MergeCo will have a pro forma enterprise value of approximately A$15.0 billion, revenue of over A$6.0 billion, EBITDA of over A$1.8 billion and OpFCF of A$0.9 billion. Approximately A$2.0 billion of VHA's existing debt will be contributed to MergeCo, which will have pro-forma leverage of approximately 2.2x net debt/EBITDA[i] and an expected strong investment grade credit profile. The strong cash generation of the combined entity is expected to support an attractive dividend. It is intended that MergeCo will pay a dividend of at least 50% of net profit after tax adjusted for one-off restructuring costs and certain non-cash items ("Adjusted NPAT")[ii] and have a medium-term target leverage range of 1.5-2.0x net debt/EBITDA. Vodafone's interest in MergeCo will be accounted for under the equity method.
Vodafone and HTAL's shareholdings in MergeCo, and the remaining VHA net debt of approximately A$4.8 billion that will not be contributed into the merged company, will primarily be held through an entity jointly owned by the Vodafone Group and HTAL. Debt held through this entity will be serviced by dividends from MergeCo, and will not be consolidated by Vodafone or HTAL. Vodafone will provide a guarantee on approximately A$2.4bn of this debt, lower than the approximately A$3.3 billion guarantee that Vodafone currently provides for VHA's debt.
Vodafone, HTAL and David Teoh have entered into a 24 month standstill arrangement in relation to their shareholdings in the combined business.[iii]
Nick Read, CEO-designate, Vodafone, said: "This transaction accelerates Vodafone's converged communications strategy in Australia and is consistent with our proactive approach to enhance the value of our portfolio of businesses. The combined listed company will be a more capable challenger to Telstra and Optus, and will be much better placed to invest in next generation mobile and fixed line services to benefit Australian consumers and businesses."
In parallel to the merger agreement, TPG and VHA have signed a separate Joint Venture Agreement. The scope of the joint venture is to acquire, hold and licence 3.6 GHz spectrum. The Government is auctioning 125 MHz of 3.6 GHz band spectrum, with the auction expected to commence in late November 2018. The joint venture will register as a participant in the auction. In addition, the parties will negotiate with the aim of expanding the business of the joint venture in future, including to acquire future spectrum licenses and/or facilitate various forms of efficient spectrum and network sharing including a shared 5G Radio Access Network. The Joint Venture Agreement is ongoing, and will not terminate if the merger fails to proceed.
It is anticipated that the merger will complete in 2019, subject to approval from TPG shareholders and regulatory authorities.
Posts: 262
Opinion: No Opinion
Posted: July 30, 2018
Vodafone Surges on Report Activist Elliott Took Stake in Carrier
Vodafone Group Plc rose the most in almost six months after DealReporter said U.S. activist investor Elliott Management Corp. has taken a new stake in the world’s second-largest mobile carrier.
The stock rose as much as 4.1 percent, the most intraday since Feb. 2, and advanced 3.4 percent to 186.08 pounds at 3:43 p.m. in London.
Elliott Advisors, the European arm of New York-based Elliott Management, first approached Vodafone several weeks ago and has held conversations with management and at least one board member, DealReporter said, citing unidentified sources familiar with the situation. Elliott is pressing for changes at the carrier, DealReporter said, without specifying. The size of the stake isn’t known but is significant, according to the report.
Representatives for Vodafone and Elliott declined to comment.
A decline in European quarterly sales that Vodafone reported last week has piled pressure on incoming Chief Executive Officer Nick Read to confront mounting competition in southern Europe and make a success of its $22 billion takeover of Liberty Global Plc’s German and eastern European businesses.
Vodafone has gone from being a challenger to Europe’s former telecom monopolies to part of an industry establishment under assault from new entrants offering simple, pared-down subscriptions.
— With assistance by Joe Mayes, and Scott Deveau
Posts: 20
Opinion: Buy
Posted: April 5, 2018
Vodafone UK has acquired 50 MHz of spectrum in the 3400 MHz band for mobile data services in Ofcom's auction for a total cost of £378.2 million (€433.4 million).*
Vodafone UK will use the 3400 MHz spectrum to deploy 5G services, enabling Gigabit speeds and lower latency to enhance applications including connected vehicles and robotics, industrial automated systems, and virtual and augmented reality.
The spectrum acquired has a twenty-year term and is convertible to perpetual licences thereafter.
Posts: 262
Opinion: No Opinion
Posted: November 14, 2017
Vodafone announces results for the six months ended 30 September 2017
14 November 2017
Highlights
· Group total revenue down 4.1% to €23.1 billion, primarily due to the deconsolidation of Vodafone Netherlands and FX movements; operating profit up 32.5% to €2.0 billion; profit for the financial period of €1.2 billion
· Organic service revenue up 1.7%*; Q2 up 1.3%* (Europe 0.8%*, AMAP 6.2%*)
· Organic adjusted EBITDA up 13.0%* to €7.4 billion (9.3%* ex roaming, UK handset financing and regulatory settlements1)
· Free cash flow (pre-spectrum) improved to €1.3 billion vs. a €0.1 billion outflow in the prior year. Free cash flow was €0.4 billion vs. a €0.4 billion outflow in the prior year
· Raising full-year guidance for organic adjusted EBITDA growth to around 10% (previously 4-8%), implying a range of €14.75-€14.95 billion at guidance FX rates; FCF pre-spectrum to exceed €5 billion (previously 'around €5 billion')
· Vodafone India service revenues down 15.8%*, adjusted EBITDA down 39.2%*; merger with Idea Cellular progressing well
· Interim dividend per share of 4.84 eurocents, up 2.1%
Posts: 262
Opinion: No Opinion
Posted: November 13, 2017
American Tower to acquire the standalone tower businesses of Vodafone India and Idea Cellular
London, United Kingdom, Mumbai India - November 13, 2017
· Vodafone India and Idea Cellular Limited ("Idea")[1] have separately agreed to sell their respective standalone tower businesses in India to ATC Telecom Infrastructure Private Limited ("ATC TIPL", formerly Viom)[2] for an aggregate enterprise value of INR78.5 billion (US$1.2 billion)[3].
· The standalone tower businesses of Vodafone India and Idea are pan-Indian passive telecommunication infrastructure businesses, comprising a combined portfolio of approximately 20,000 towers with a combined tenancy ratio of 1.65x as at 30 June 2017.
· Idea will sell its entire stake in ICISL and Vodafone India will sell a business undertaking to ATC TIPL.
· Both Vodafone India and Idea as customers, and ATC TIPL as a mobile network infrastructure provider, have agreed to treat each other as long-term preferred partners, subject to existing arrangements. The parties will work together to further the expansion of high speed mobile networks in India.
· After Vodafone India and Idea have completed their merger, ~6,300 co-located tenancies of the two operators on the combined standalone tower businesses will collapse into single tenancies over a period of two years without the payment of exit penalties[4].
· This transaction follows the Vodafone India / Idea merger announcement of 20 March 2017 whereby the parties announced their intention to sell their individual standalone tower businesses to strengthen the balance sheet of the combined business.
· In the event that the completion of the sale of the standalone tower businesses precedes the completion of the proposed merger of Vodafone India and Idea, Vodafone India will receive INR38.5 billion (US$592 million) and Idea will receive INR40.0 billion (US$615 million)[5]. The receipt of these proceeds prior to completion was anticipated and provided for in the merger agreement and hence would not affect the agreed terms of the Vodafone India and Idea merger, including the amount of debt which Vodafone will contribute to the combined company at completion[6].
· Completion of the transaction is subject to customary closing conditions and receipt of necessary regulatory approvals, and is expected to take place during the first half of calendar year 2018.