Edition:
India

Vodafone To Combine Italian Towers With INWIT


Friday, 26 Jul 2019 

July 26 (Reuters) - Vodafone Group Plc ::VODAFONE TO COMBINE ITALIAN TOWERS WITH INWIT.VODAFONE WILL RECEIVE A CASH CONSIDERATION OF EUR 2,140 MILLION AND A 37.5% SHAREHOLDING IN COMBINED ENTITY.PRO FORMA FOR COMBINATION, INWIT IS EXPECTED TO HAVE AN ASSET BASE COMPRISING C.22,100 TOWERS.VODAFONE'S SHAREHOLDING WOULD BE VALUED AT EUR 3,130 MILLION, WHICH IMPLIES AN ENTERPRISE VALUE FOR VODAFONE ITALY TOWERS OF EUR 5,270 MILLION.INWIT ESTIMATES THAT COMBINATION, NETWORK SHARING DEAL TO DELIVER EBITDA FROM SYNERGIES AND COMMITTED SERVICES OF ABOUT EUR 110 MILLION BY 2026.CO, TIM TO RETAIN JOINT CONTROL OF INWIT, BUT OVER TIME WILL CONSIDER JOINTLY REDUCING RESPECTIVE OWNERSHIP LEVELS TO MINIMUM OF 25%.NETWORK SHARING PARTNERSHIP IS EXPECTED TO DELIVER NET CUMULATIVE CASHFLOW BENEFITS TO VODAFONE OF AT LEAST EUR 800 MILLION OVER NEXT 10 YEARS.BOARD OF INWIT WILL COMPRISE OF 13 DIRECTORS, INCLUDING 5 APPOINTEES FROM VODAFONE AND 5 APPOINTEES FROM TIM.CASH FLOW IMPACT OF NETWORK SHARING IS EXPECTED TO REFLECT MODEST NET INVESTMENT DURING IMPLEMENTATION PHASE OVER FIRST TWO YEARS.CO, TIM INTEND TO RETAIN JOINT CONTROL OF INWIT, BUT OVER TIME WILL CONSIDER REDUCING RESPECTIVE OWNERSHIP LEVELS FROM 37.5% TO MIN. 25.0%.VODAFONE WILL INITIALLY HAVE RIGHT TO APPOINT CHAIRMAN AND CFO, WHILE TIM WILL APPOINT CEO.APPOINTMENTS OF CHAIRMAN, CEO AND CFO WILL ALTERNATE BETWEEN VODAFONE AND TIM EVERY 3 YEARS.