Vodafone Group (LON: VOD) said Thursday that it has finalised the €8 billion sale of Vodafone Italy to Swisscom AG.
The cash deal values Vodafone Italy at a multiple of 7.6 times consensus Adjusted EBITDAaL and approximately 26 times OpFCF for the 2024 fiscal year.
The valuation represents a premium to Vodafone’s trading multiple. It is also the highest OpFCF multiple achieved in any Vodafone transaction over the past decade, according to the company.
As part of the agreement, Vodafone will continue to provide certain services to Vodafone Italy for up to five years post-completion, with the first-year annual charges estimated at €350 million.
The proceeds from the sale will be directed towards reducing Vodafone Group’s net debt. Additionally, the Board plans to return up to €2 billion to shareholders following the completion of the current buyback programme.
Vodafone Italy was sold by Vodafone Europe B.V., a wholly owned subsidiary of Vodafone Group, to Fastweb S.p.A., a subsidiary of Swisscom AG.
This deal is part of Vodafone’s focus on debt reduction and enhancing shareholder value.
Vodafone shares have risen around 0.5% on Thursday.
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