13th May 2019 18:08
LONDON (Alliance News) - Vodafone Group PLC said late Monday it has sold its New Zealand subsidiary for EUR2.1 billion to a consortium of New Zealand infrastructure investment firm Infratil Ltd and Canadian alternative asset manager Brookfield Asset Management Inc.
As part of the deal, Vodafone will enter into a partner market agreement with the consortium. The agreement will see the business continue to use of Vodafone's brand, provide it with preferential roaming arrangements for Vodafone customers, and the consortium will still have access to Vodafone's global internet of things platform and central procurement function.
Vodafone New Zealand has a mobile customer base of about 2.0 million subscribers and a fixed customer base of about 500,000.
"An important aspect of our strategy is the active management of our portfolio and deleveraging, which this transaction further demonstrates. We have always been proud of our Vodafone New Zealand business, which has a great team, and we look forward to a continued close relationship through our Partner Market agreement," said Chief Executive Nick Read.
In the year ended March 31, Vodafone New Zealand generated revenue of EUR1.21 billion with adjusted earnings before interest, tax, depreciation and amortization of EUR281 million.
Shares in Vodafone closed down 5.2% Monday at 131.78 pence each.
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