25th Aug 2006 07:00
Vodafone Group Plc24 August 2006 25 August 2006 SALE OF 25% INTEREST IN PROXIMUS Vodafone today announces that it has agreed to sell its 25% interest in Proximusto Belgacom for a consideration of €2.0 billion in cash. Belgacom already owns75% of Proximus which is the leading mobile operator in Belgium. The consideration implies an Enterprise Value to EBITDA (Note 1) multiple of 7.2x for the financial year ending 31 March 2007. Net cash proceeds to Vodafone are anticipated to be €2.0 billion (£1.4 billion). Vodafone and Proximus have also signed a revised long-term Partner NetworkAgreement in Belgium with an initial five year term. This will enable Proximusand Vodafone customers to continue to benefit from Vodafone's global productsand services such as Vodafone live!, Vodafone Mobile Connect Card, Blackberryfrom Vodafone and international roaming services, including preferred roamingarrangements. In addition, the two companies will continue to co-operate inserving international corporate customers. Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone, said: "We have enjoyed a long and successful relationship with Belgacom, and togetherhave built the leading mobile operator in Belgium. We do not, however, seeourselves as the most appropriate long-term holder of this minority stake. Inline with our strategy of actively managing our portfolio and maximisingreturns, we have achieved an attractive price with this sale. I am also pleasedthat our customers will continue to benefit from our products and services inBelgium through a renewed long-term Partner Network Agreement with Proximus." The sale is subject to certain regulatory approvals and is expected to closebefore 31st December 2006. The sale proceeds will be used to reduce Vodafone'snet indebtedness. This transaction does not materially affect Vodafone's proportionate mobilerevenue and EBITDA outlook for the financial year ending 31 March 2007. However,Vodafone will no longer receive anticipated dividend income from Proximus ofapproximately £150m this year and there will be a corresponding reduction in theGroup's free cash flow outlook for the financial year ending 31 March 2007. As a result of the transaction, Vodafone currently anticipates recording a gainon disposal of approximately £0.45 billion in its results for the year ending 31March 2007 and will cease recording its share of the result of its 25% interestin Proximus from the date of closing of the sale. -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 186.8 millionproportionate customers worldwide as at 30 June 2006 as well as 33 partnernetworks. For further information, please visit www.vodafone.com About Proximus Proximus is the trading name of Belgacom Mobile SA. Proximus is the mobiletelephony market leader in Belgium and is 75% owned by the Belgacom Group and25% owned by Vodafone. For further information, please visit www.proximus.be About Belgacom The Belgacom Group (Belgacom S.A. and its subsidiaries) is the largesttelecommunications company in Belgium and a market leader in many fields,particularly in wholesale and retail fixed line services, mobile communications,Internet and broadband data transmission services. For further information,please visit www.belgacom.be Note 1: Proximus EBITDA estimate for fiscal year 2007 is based on a consensus ofresearch analysts' estimates. For illustrative purposes an exchange rate of £0.68:€1 has been used. (c) Vodafone Group 2006. VODAFONE, the Vodafone logos, Vodafone live! andVodafone Mobile Connect are trade marks of the Vodafone Group. Other product andcompany names mentioned herein may be the trade marks of their respectiveowners. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Vodafone