Greece’s Vodafone-Panafon and Wind Hellas are reportedly close to finalising a share purchase agreement to merge their operations, with local media predicting an announcement will be made before 9 February.
Athens-based newspaper Kathimerini…
Greece’s Vodafone-Panafon and Wind Hellas are reportedly close to finalising a share purchase agreement to merge their operations, with local media predicting an announcement will be made before 9 February.
Athens-based newspaper Kathimerini reported Greece’s second and third largest mobile operators are eager to conclude the agreement before Vodafone announces its financial results for Q4 2011 on Thursday next week.
According to the report, which cites unnamed sources, the agreement will be a share-based transaction with no cash component. The report stated Vodafone shareholders will own 60% of the new entity, while Wind shareholders will own the remaining 40%.
The newspaper reported one unnamed “reliable source” said the agreement will include a specific exit strategy for Wind shareholders.
Vodafone confirmed in August that the company was in talks with Wind owners Largos about a merger of operations in Greece, although a spokesman today declined to comment on how the matter was progressing. However, he did say no decision has yet been made.
TelecomFinance reported earlier that Vodafone hired BofA Merrill Lynch to explore a possible merger between its Greek subsidiary and Wind.
Any such deal would require approval from the European Commission antitrust authorities.
As previously reported, Vodafone Group CEO, Vittorio Colao, told attendees at a November 2011 conference in Barcelona that the Greek subsidiary may not be viable in the long-term if regulators do not approve the merger.
That same month, the Wall Street Journal reported that Michael Tsamaz, CEO of Greece’s largest telco OTE, told conference-goers he felt confident the regulator would approve the merger.
Tsamaz reportedly described the merger as “a healthy move” for the sector as a whole, creating a less fragmented market with dominant participants focused on long-term profitability.