Vodafone to Merge Italian Towers With Telecom Italia's Inwit
27 July 2019 - 12:08AM
Dow Jones News
By Adria Calatayud
Vodafone Group PLC (VOD.LN) will combine its Italian tower unit
with Telecom Italia SpA's (TIT.MI) Inwit in a deal that implies an
enterprise value for the assets of 5.27 billion euros ($5.87
billion), the companies said Friday.
The U.K. telecommunications company said it will receive EUR2.14
billion and a 37.5% shareholding in the combined entity, which will
be listed on the Milan Stock Exchange. Vodafone and TIM intend to
retain joint control of Inwit but over time will consider jointly
reducing their stake to a minimum of 25.0%, the companies said.
Vodafone and TIM will enter into an agreement which includes a
three-year lock-up pact for their respective shareholdings, they
said.
The network-sharing partnership is expected to enable faster
deployment of 5G over a wider geographic area at a lower cost,
Vodafone and TIM said. The companies said they expect cumulative
savings of EUR800 million each over the next ten years.
The deal is subject to regulatory approval and is expected to be
completed during the first half of 2020, Vodafone said.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
July 26, 2019 09:53 ET (13:53 GMT)
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