Britain's Vodafone Group has announced the sale of its Italian operations to Swisscom, the Switzerland-based telecom operator, for €8 billion ($8.7 billion).
This sale, confirmed on Friday, is part of Vodafone's broader plan to streamline its portfolio and focus on markets where it can ensure profitable growth.
Following the sale, Vodafone plans to return half of the proceeds, amounting to €4 billion, directly to its shareholders through a comprehensive share buyback.
Margherita Della Valle, Vodafone's chief executive, highlighted the transaction as the “final step in the reshaping of our European operations”, emphasising the company's aim to operate in growing telecoms markets where it holds strong positions.
This move is seen as a focus on areas offering predictable and robust growth in Europe.
“Vodafone’s Italian business has been struggling, so shedding this weight should help the group refocus,” said Sophie Lund-Yates, lead equity analyst at stockbrokers Hargreaves Lansdown.
“Attention will now turn to how effectively Vodafone uses its resources to fix wider challenges, including high debts, costs and some increasing competition. ”
Swisscom intends to finance the purchase through new debt and merge Vodafone Italia with its Italian subsidiary, Fastweb, attempting to unlock significant savings and provide enhanced services in Italy.
The sale agreement also includes an arrangement where Vodafone will continue to provide certain services to Swisscom over the next five years, with an initial annual charge of €350 million, anticipated to decrease over time.
Both companies are exploring a closer commercial relationship, which may enable collaboration across areas beyond Italy.
Vodafone has previously sold its Spanish operations and is in the process of merging its UK business with Three UK, aiming to create Britain's largest mobile phone network.
The transaction has been well-received in the market, with Vodafone's shares closing 5.7 per cent higher in London.
Swisscom's shares rose 4.9 per cent in Zurich, indicating positive investor sentiment regarding the deal's potential benefits for both companies.
Swisscom's chief executive Christoph Aeschlimann expressed enthusiasm about the merger's “industrial logic”.
“Fastweb and Vodafone Italia are an ideal fit to create high added value for all stakeholders,” he said.
The combined operation is expected to sustain investments and offer improved services, addressing the competitive challenges in the Italian telecom market.
Despite the divestment and the focus on reshaping its European operations, Vodafone faces challenges, including high debts and increasing competition in its remaining markets.
The sale of Vodafone Italia to Swisscom is expected to be completed by the end of the first quarter of 2025, marking a milestone in Vodafone's overhaul and its commitment to focusing on core markets and improving shareholder returns.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
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UAE currency: the story behind the money in your pockets
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
Mercedes-AMG GT 63 S E Performance: the specs
Engine: 4.0-litre twin-turbo V8 plus rear-mounted electric motor
Power: 843hp at N/A rpm
Torque: 1470Nm N/A rpm
Transmission: 9-speed auto
Fuel consumption: 8.6L/100km
On sale: October to December
Price: From Dh875,000 (estimate)
Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
Company%20Profile
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Match info
Costa Rica 0
Serbia 1
Kolarov (56')
The biog
Born: near Sialkot, Pakistan, 1981
Profession: Driver
Family: wife, son (11), daughter (8)
Favourite drink: chai karak
Favourite place in Dubai: The neighbourhood of Khawaneej. “When I see the old houses over there, near the date palms, I can be reminded of my old times. If I don’t go down I cannot recall my old times.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
How Voiss turns words to speech
The device has a screen reader or software that monitors what happens on the screen
The screen reader sends the text to the speech synthesiser
This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen
A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB
The speech synthesisers VOISS develops are free
Subsequent computer versions will include improvements such as wireless keyboards
Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser
Partnerships planned during Expo 2020 Dubai to add more languages
At least 2.2 billion people globally have a vision impairment or blindness
More than 90 per cent live in developing countries
The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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