(AOF) – The Iliad Group has submitted to the Vodafone group a proposal for a merger between Iliad Italia and Vodafone Italia. The proposal values Vodafone Italia at €10.45 billion (EV). Vodafone would get 50% of NewCo’s share capital, as well as a cash payment of €6.5 billion and a shareholder loan of €2 billion to ensure long-term alignment. Vodafone’s stake in NewCo at closing is valued at 1.95 billion euros.
Under the proposed transaction, iliad would have a call option on Vodafone’s stake in NewCo and could acquire a block of 10% of the share capital of NewCo each year at a price per share equal to the value of the capital. (equity value) at closing. In the event that iliad chooses to exercise all of the purchase options, this would generate an additional amount of 1.95 billion euros in cash for Vodafone.
The French group specifies that this proposal offers both value and liquidity to Vodafone. It also responds to Vodafone’s publicly expressed intention to transform and simplify the group
“NewCo would become the leader in investment in cutting-edge technologies and customer-centric solutions in the Italian telecommunications market, supporting and accelerating the digital transformation of the country and in particular the adoption of optical fiber,” specifies a press release from Free’s parent company.
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