• 25/07/2024 12:03

Vodafone sells Italian division to Swisscom for €8 billion

Vodafone Group Plc is selling its Italian business to Swisscom AG for €8 billion. A share buyback worth €4 billion was also announced. These steps are aimed at optimizing Vodafone's operations and increasing share price. Bloomberg reports this.

Vodafone sells the Italian department of Swisscom for 8 billion euros

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Swisscom will connect Vodafone Italia with its subsidiary Fastweb SpA. This was stated in a statement from the companies on Friday, March 15.

The transaction is expected to be completed in the first quarter of 2025. The Swiss government, the majority shareholder of Swisscom, has separately announced its support for the agreement.

Vodafone CEO Margherita Della Valle has faced a declining share price and pressure to sell or merge underperforming units.

This also applies to Italian businesses, which suffer from fierce competition and low tariff prices compared to other markets. Della Valle has also agreed to sell Vodafone Spain and plans to merge the company's UK unit with CK Hutchison Holdings Ltd.

In a statement, Della Valle called the sale “the final step in rebuilding its European operations.”

“Our business units will operate in growing telecommunications markets, where we have a strong position. “This will allow us to deliver the predicted and faster growth in Europe,” she noted.

Combined with the recent sale of the Spanish division of Vodafone, the company said it will receive about 12 billion euros from the two transactions and plans to buy back shares at the amount of 4 billion euros.

Share growth

Vodafone shares in London trading increased by 4.3% to 68.92 pence as of the morning of March 15.

Swisscom shares on the Zurich Swisscom stock exchange rose by 3% to CHF 518.80.

minfin.com.ua

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