Il Iliad Group recently proposed one merger of the Italian operations of Iliad and Vodafoneaiming to create a unified entity that could revolutionize the landscape of telecommunications in Italy. The main objective of this proposal is to train the most innovative challenger telecommunications operator in the Italian market.
Iliad proposes merger with Vodafone in Italy
The proposed valuation for Vodafone Italia is 10.45 billion eurosa value that would be transferred primarily in the form of 8.5 billion euros in cash and shareholder financing. This deal would see Vodafone get the 50% of the share capital of a new company, called “NewCo”while Iliad, rated at 4.45 billion euroswould also receive 50% of the share capital of this new entity.
According to what was announced by Iliad, this proposal was welcomed by the board of directors and the main shareholder of Iliad, Xavier Nol, and aims to create a market offering based oninnovationon the growth and on a level of customer experience senza pari.
The merger aims to support and accelerate the digital transition of the country, focusing on the adoption of optic fiber and technological innovation. NewCo would benefit from Iliad’s innovative approach to connectivity e all’digital inclusivenessin addition to Vodafone’s experience in the sector B2B.
The NewCo, if created, would generate a turnover of approximately 5.8 billion euros it’s a EBITDAaL of approximately 1.6 billion euros by March 2024. They are also expected annual synergies of over 600 million euros in Opex + Capex. At closing, the net debt/EBITDAaL ratio would be 4.5xwith the intention of reducing below 3x within three years later the merger.
Vision of the CEO of Iliad
Thomas Reynaud, CEO of the Iliad Group, commented: “The market context in Italy requires the creation of the most innovative telecommunications challenger operator, with the ability to compete and create value in a competitive environment. We believe that the complementary profiles and skills of iliad and Vodafone in Italy would allow us to build a strong operator with the capacity and financial strength necessary to invest in the long term. NewCo would be fully committed to accelerating the country’s digital transition and in particular in the adoption of optical fiber and the development of 5G, with over 4 billion euros of investments expected in the next 5 years”.
We will keep you updated on the developments of this important possible merger.