Vodafone Group is close to finalising an agreement to buy Ono for €7.2bn (US$10bn) – more than 10 times the Spanish cableco’s EBITDA, according to multiple reports.
Vodafone has reached a verbal agreement with Ono’s private equity owners according…
Vodafone Group is close to finalising an agreement to buy Ono for €7.2bn (US$10bn) – more than 10 times the Spanish cableco’s EBITDA, according to multiple reports.
Vodafone has reached a verbal agreement with Ono’s private equity owners according to Expansion, while Reuters reported that a preliminary agreement could be reached today, and El Confidencial said that a deal could be signed on Monday.
All three publications reported the €7.2bn figure, citing sources.
Representatives from Vodafone, Ono, and Ono’s private equity owners all declined to comment.
Yesterday Ono’s shareholders approved management’s plans to launch an initial public offering. However, the company is planning to slow preparations for the listing and not announce anything until next week to allow time for Vodafone to make a binding offer, Bloomberg wrote citing two people with knowledge of the matter.
Vodafone has been conducting accelerated due diligence on the target since last weekend.
The British telco had held informal talks regarding a takeover with Ono in early February, but the Madrid-based cable operator rebuffed its interest due to a difference in valuation and decided to press ahead with its long-planned flotation.
However, Vodafone raised its offer at the end of last week, which was said to have “focused minds” in the Ono camp.
Ono is 54.4%-owned by investment firms Providence Equity Partners, Thomas H. Lee, CCMP and Quadrangle, which invested €1bn into the company in 2005. The rest of its stock is held by other institutional investors.
