NEW YORK, March 16, 2001 (PRNewswire) Vodafone Group Plc announces that its subsidiary Mannesmann AG has agreed to revised terms for the sale of Infostrada S.p.A. to Enel S.p.A.
The sale price is EUR 7.25 billion for the whole of the issued share capital of Infostrada. In addition, Enel will assume the net debt of Infostrada, which was EUR 1.3 billion at 26 February 2001. The net debt of Infostrada at this date comprised an intra-group debt owed to Vodafone Group companies equal to approximately EUR 1.0 billion.
The sale is expected to complete by 29 March 2001.The consideration for the equity will be entirely in cash and paid on completion. The intra-group debt owed to Vodafone Group companies will be repaid in full in cash on completion.
Under the original terms of the transaction the price was subject to a market-related price adjustment. Vodafone entered into a hedging transaction in order to obtain protection against an adverse adjustment. This hedging transaction has now been closed with cash proceeds to Vodafone of approximately EUR 410 million. The revised terms do not make provision for a market-related price adjustment.
The agreement is subject only to the approval of the Mannesmann AG Supervisory Board.
Vodafone will apply the proceeds of the sale to reduce group debt.
Infostrada is Italy’s largest alternative fixed line operator, with over 3.5 million voice customers and 4.1 million internet subscribers as at 31 December 2000.
Infostrada recorded revenues for the year ended 31 December 2000 of EUR 932 million and EBITDA of EUR 12 million for that year.
Enel is Italy’s national electricity provider and its largest integrated utility. Enel has a 56.6% shareholding in Wind, a fixed and mobile telecom operator serving both residential and business customers. France Telecom holds the remaining 43.4% in Wind.
Vodafone was advised by UBS Warburg.