UK-based mobile operator Vodafone has confirmed that its Greek subsidiary is in talks with local rival Wind Hellas to “explore a potential business combination”.
“Discussions are at an early stage and there is no certainty as to whether an…
UK-based mobile operator Vodafone has confirmed that its Greek subsidiary is in talks with local rival Wind Hellas to “explore a potential business combination”.
“Discussions are at an early stage and there is no certainty as to whether an agreement will be reached,” said Vodafone in a statement today.
The company declined to elaborate further, but a source close to the group said the discussions in question were regarding a merger between the two companies.
But, even if Vodafone Greece combined with Wind Hellas, the enlarged group would still be smaller than market leader Cosmote, the source added.
Reports citing local paper Ptoto Thema yesterday suggested that Vodafone could acquire Wind for around E1bn in cash before the end of the year.
However, a Vodafone spokesman said that speculation that it’s in negotiations to acquire the group for cash is “incorrect”.
Wind’s senior bondholders completed their takeover of the group in January this year from Egyptian tycoon Naguib Sawiris, having agreed to invest E420m to repay debt and fund its long-term development and business plan.
This investment also freed Wind from E1.867bn of third party debt, allowing it to come under the ownership of a newly established holding group called Largo Limited.
Wind Hellas’ new owners, who were advised by Moelis & Company, include Anchorage Capital Group, Mount Kellett Capital Partners, Eton Park International, Taconic Capital Advisers, MBSP and PEP TMT SSF Cayman and Angelo Gordon & Co.
Morgan Stanley managed the sale.
Wind Hellas was unable to comment before the press deadline.
