Iliad wants Vodafone: the official offer puts 8 billion on the table. Vodafone replies.
- Vodafone responds to the Iliad offer
The rumors circulating these days were true. Iliad has every intention of taking over the Italian operator Vodafone to create a new “super operator”.
With a press release it is Iliad to let people know that they have put it on the plate 8.5 billion For Vodafone, valued at 10.45 billion, so that a merger can take place between the two operators with 50% shares. We speak generically of a NewCo, or a new company, a bit like what happened with WindTre, from the merger of Wind and 3 Italia.
The Iliad group therefore today officially announced that it has presented this proposal for the merger of the activities between the two companies, with the aim of developing a market offering that can be based oninnovation and the quality of customer support. The offer, Iliad reports, has the unanimous support of its board of directors and Xavier Niel, its main shareholder.
The operation is aimed at strengthening the market by creating a single operator that can push harder with innovation, especially on optic fiber.
This is what can be seen from the first press release issued.
However, the fact that a proposal of this type has been made obviously does not mean that it will automatically be accepted. Already in February 2022 Iliad had come forward, however receiving a refusal. Also in the press release released today, mention is made of that proposal and how it is more advantageous for Vodafone considering the current market conditions. This is because, as reported by Milanofinanza, Vodafone is making a loss and is openly evaluating join ventures like these. In Spain, for example, it is pursuing the merger with Zegona, while in the UK with Tre. For Italy there is talk of another possible interested party, namely Swisscom.
As part of the proposal, Iliad would then have an option right on Vodafone’s participation in the next company, with the possibility of acquire 10% of the share capital every year of NewCo “at an equal price per share to equity value to the closing“.
If it were to decide to fully exercise this right it would generate another 1.95 billion in liquidity for Vodafone, in addition to the initial 8.5.
If you don’t want to wait for the possible merger to take advantage of one of the best offers on the market, we remind you that Iliad is currently promoting its new Flash 180.
Vodafone responds to the proposed merger between Vodafone Italia and Iliad Italia.
Vodafone Group Plc (“Vodafone”) takes note of today’s announcement by Iliad regarding the proposed merger between Vodafone Italia and Iliad Italia.
Consistent with its previous statements, Vodafone is in favor of market consolidation in countries where it is unable to obtain an adequate return on invested capital and confirms that it is exploring options with different parties to achieve this objective in Italy, including through a merger or a transfer.
There is no certainty that a settlement will ultimately be agreed. If necessary, a further announcement will be made when appropriate.
Basically Vodafone takes note and leaves the door open, without confirming or denying (for now) the outcome of the negotiation, which is obviously still ongoing. In short, we will have to wait for a possible “further announcement”, and perhaps the times will not be very short; in any case we will be here ready to tell you about it.
