UK mobile operator Vodafone has announced the completion of the E7.95bn disposal of its 44% shareholding in French mobile operator SFR to French media and telecoms group Vivendi.
On 4 April, the two companies announced they had agreed the deal, which has…
UK mobile operator Vodafone has announced the completion of the E7.95bn disposal of its 44% shareholding in French mobile operator SFR to French media and telecoms group Vivendi.
On 4 April, the two companies announced they had agreed the deal, which has now been approved by competition and regulatory authorities.
Today, Vodafone said it had received a cash consideration of E7.75bn (£6.8bn) from Vivendi and a final dividend from SFR of E200m (£176m).
The E7.75bn portion corresponds to a 6.2 multiple of SFR’s 2010 EBITDA, while the E200m portion reflects the generation of cash between January 1 and July 1 2011.
Vodafone and SFR reiterated that a partner market agreement would maintain their commercial co-operation for another three years.
Vodafone added that the £4bn associated share buyback programme will commence shortly, as promised at the time the agreement was announced. The remainder is due to be used to reduce debt.
Vivendi, for its part, has indicated that full ownership will give it the ability to expand SFR outside of France.
Vivendi was advised by advised by Rothschild and Allen & Overy, while Vodafone was advised by Lazard and Linklaters.
The transaction has been long awaited. Vivendi chairman and CEO Jean-Bernard Levy had repeatedly said that his group sought to take full control of SFR, while Vodafone said last year that it was looking to offload several minority investments in foreign companies in order to return money to its investors.
Last year, the British company sold its 3.2% stake in China Mobile, and it is at the moment involved in the process to sell its 24.39% stake in Polish mobile operator Polkomtel.
