19th Dec 2006 07:00
Vodafone Group Plc19 December 2006 19 December 2006 SALE OF 25% INTEREST IN SWISSCOM MOBILE Vodafone today announces that it has agreed to sell its 25% interest in SwisscomMobile to Swisscom for a cash consideration of CHF4.25 billion (£1.8 billion).Swisscom already owns 75% of Swisscom Mobile, which is the leading mobileoperator in Switzerland. The consideration implies an Enterprise Value to EBITDA1 multiple of 9.1x forthe financial year ending 31 March 2007. Vodafone and Swisscom Mobile have signed a revised long-term Partner NetworkAgreement in Switzerland with an initial five year term. This will enableSwisscom Mobile and Vodafone customers to continue to benefit from Vodafone'sglobal products and services such as Vodafone live!, Blackberry from Vodafoneand international roaming services, including preferred roaming arrangements. Inaddition, Vodafone and Swisscom will continue to co-operate in servinginternational corporate customers. Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone, said: "Vodafone and Swisscom have enjoyed an excellent relationship since weacquired our 25% stake in Swisscom Mobile in January 2001. We do not,however, see ourselves as the most appropriate holder of this minority stake inthe longer-term and Swisscom is keen to increase its holding in Swisscom Mobileto drive through synergies in its fixed and mobile businesses. It thereforemakes sense to sell our stake now for an attractive price." The sale is expected to close on 20 December 2006. The sale proceeds will beused to reduce Vodafone's net indebtedness. This transaction does not materially affect Vodafone's proportionate mobilerevenue and EBITDA margin outlook for the financial year ending 31 March 2007.However, Vodafone will no longer receive anticipated dividends from SwisscomMobile of approximately £0.1 billion this year and there will be a correspondingeffect on the Group's free cash flow outlook for the financial year ending 31March 2007. As a result of the transaction, Vodafone currently anticipates recording a gainon disposal of approximately £0.1 billion in its results for the year ending 31March 2007 and will cease recording its share of the result of Swisscom Mobilefrom today's date. - ends - For further information: Vodafone Group Investor Relations Media RelationsTelephone: +44 (0) 1635 664447 Telephone: +44 (0) 1635 664444 NOTES TO EDITORS About Vodafone Vodafone is the world's leading international mobile telecommunications groupwith equity interests in 27 countries across 5 continents with 191.6 millionproportionate customers worldwide as at 30 September 2006 as well as 33 partnernetworks. For further information, please visit www.vodafone.com About Swisscom Mobile Swisscom Mobile is the mobile telephony market leader in Switzerland with over60% market share. For further information, please visit www.swisscom-mobile.ch About Swisscom Swisscom (Swisscom AG and its subsidiaries) is the largest provider of telecomsand IT services in all key business segments in Switzerland. For furtherinformation, please visit www.swisscom.ch Notes: 1. Swisscom Mobile EBITDA estimate for fiscal year 2007 is based on a consensus of research analysts' estimates 2. For illustrative purposes an exchange rate of CHF 2.38:£1 has been used 3. Vodafone and Vodafone live! are trade marks of the Vodafone Group. Other product and company names mentioned herein may be the trade marks of their respective owners. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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