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Vodafone announces sale of 25% interest in Proximus
Vodafone has today announced that it has agreed to sell its 25% interest in Proximus to Belgacom for a consideration of EUR 2.0 billion in cash. Belgacom already owns 75% of Proximus which is the leading mobile operator in Belgium.
The consideration implies an Enterprise Value to EBITDA(1) multiple of 7.2x for the financial year ending 31 March 2007. Net cash proceeds to Vodafone are anticipated to be EUR 2.0 billion (GBP 1.4 billion).
Vodafone and Proximus have also signed a revised long-term Partner Network Agreement in Belgium with an initial five year term. This will enable Proximus and Vodafone customers to continue to benefit from Vodafone's global products and services such as Vodafone live!, Vodafone Mobile Connect Card, Blackberry from Vodafone and international roaming services, including preferred roaming arrangements. In addition, the two companies will continue to co-operate in serving international corporate customers.
Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone,said: "We have enjoyed a long and successful relationship with Belgacom, and together have built the leading mobile operator in Belgium. We do not, however, see ourselves as the most appropriate long-term holder of this minority stake. In line with our strategy of actively managing our portfolio and maximising returns, we have achieved an attractive price with this sale. I am also pleased that our customers will continue to benefit from our products and services in Belgium through a renewed long-term Partner Network Agreement with Proximus."
The sale is subject to certain regulatory approvals and is expected to close before 31st December 2006. The sale proceeds will be used to reduce Vodafone's net indebtedness.
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