Business
Zegona to acquire Vodafone Spain for EUR 5.0bn
Zegona to acquire Vodafone Spain for EUR 5.0bn.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. THIS ANNOUNCEMENT DOES NOT CONSTITUTE A TAKEOVER OFFER OR AN OFFER OF SECURITIES. NO OFFER OR SALE OF SECURITIES MAY OCCUR IN THE UNITED STATES UNLESS THE TRANSACTION HAS BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED OR IS EXEMPT FROM REGISTRATION THEREUNDER.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION for the purposes of Article 7 of the UK version of the Market Abuse Regulation (EU 596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.\n \n31 October 2023\nZegona to acquire Vodafone Spain for €5.0 billion\nZegona announces that it has entered into binding agreements with Vodafone Europe B.V. (\"Vodafone\") in relation to the acquisition of 100% of Vodafone Holdings Europe, S.L.U. (\"Vodafone Spain\") for €5.0 billion (the \"Acquisition\").\n· Transaction values Vodafone Spain at an enterprise value of €5.0 billion, representing a multiple of 3.9x EBITDAaL\n· Zegona will fund the Acquisition through a combination of new debt, Vodafone Financing and a new equity raise\no Zegona has entered into committed debt financing of €4.2 billion and a committed revolving credit facility of €0.5 billion. Post equity raise the new debt facility is anticipated to deliver a net debt position at Completion of €3.7 billion, representing 2.9x leverage1\no Vodafone will provide up to €900 million financing2\no Zegona equity raise of up to €600 million from third party investors to be executed before completion3\n· Vodafone Group plc will provide a brand licence agreement which permits Zegona to use the Vodafone brand in Spain for up to 10 years post completion. Vodafone and Zegona will enter into other transitional and long-term arrangements for services including access to procurement, IoT, mobile roaming and carrier services.\nEamonn O'Hare, Zegona's Chairman and CEO, said:\n\"We are very excited about the opportunity to return to the Spanish telecoms market. This financially attractive acquisition marks our third deal in Spain...