Vodafone is in talks to acquire the 57% stake in Greek broadband provider Hellas Online from co-investor Intracom Holdings.
Vodafone’s Greek unit, Vodafone-Panafon, and Intracom are “in discussions considering all options and forms of…
Vodafone is in talks to acquire the 57% stake in Greek broadband provider Hellas Online from co-investor Intracom Holdings.
Vodafone’s Greek unit, Vodafone-Panafon, and Intracom are “in discussions considering all options and forms of cooperation,” Intracom said in a short statement. The Peania-based company said it will inform shareholders and the wider investor community if and when new developments arise.
UK-based Vodafone, which has an 18.43% stake in Hellas Online, declined to comment.
Hellas Online has a market capitalisation on the Athens Stock Exchange of €103.7m, valuing the 57% stake at €59.1m.
Vodafone is striving to add to its mobile offerings in Europe by acquiring fixed-line assets. The company agreed to acquire German cableco KDG last year and has been strongly linked with a bid in the region of €7bn for Spain’s largest cableco Ono. It has also been speculated that Vodafone may make a bid for pan-European cableco Liberty Global.
Antonis Diapoulis, an analyst with Alpha Finance in Greece, said the talks are at an advanced stage, although the parties have not agreed on the consideration.
“As a deal, it makes a lot of sense since Vodafone is trying to consolidate the market,” he said, noting that the UK operator recently acquired an additional 7% stake in Forthnet, Greece’s second-largest fixed-line operator and largest pay TV provider.
Diapoulis said he believes the deal has a good chance of completing. In his view, the next battle will be for Forthnet, in which Vodafone-Panos’ rival, Wind Hellas, has a 33% stake.
Constantinos Zouzoulas, managing director of research at Axia Ventures in Athens, also believes talks are advanced and that the deal makes sense.
“Vodafone would be able to better bundle fixed and internet in its mobile offerings,” he said, noting that Hellas Online has significant fixed-line infrastructure and also offers content.
Vodafone is set to close the US$130bn sale of its 45% stake in US operator Verizon Wireless today and, while most of the proceeds will go to investors and network upgrades, about US$40bn will be left over.
Earlier this month, Vodafone CEO Vittorio Colao told reporters the company could send US$30bn-US$40bn on strategic acquisitions over the coming years.
The remaining shares in Hellas Online are held by World Equities Investments Holdings, which has a 15.5% stake, and small shareholders, which own 12.78%.
