Sale of Infostrada
Vodafone Group PLC
16 March 2001
VODAFONE AGREES TERMS FOR THE SALE OF INFOSTRADA TO ENEL
Vodafone Group Plc ('Vodafone') announces that its
subsidiary Mannesmann AG has agreed revised terms for the
sale of Infostrada S.p.A. ('Infostrada') to Enel S.p.A.
('Enel').
* 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
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
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.
For further information:
Tim Brown, Group Corporate Affairs Director
Melissa Stimpson, Head of Group Investor Relations
Jon Earl, Investor Relations Manager
Darren Jones, Investor Relations Manager
+44 (0) 1635 33 251
John West
Tavistock Communications
+44 (0) 20 7600 2288
Warren Finegold
Alberto Franzone
Andre Sokol
UBS Warburg Ltd.
+44 (0) 20 7567 8000
This announcement has been issued by and is the sole
responsibility of Vodafone Group Plc. UBS Warburg Ltd., a
subsidiary of UBS AG, which is regulated in the United
Kingdom by The Securities and Futures Authority Limited,
is acting for Vodafone Group Plc and for no one else in
connection with the proposed transaction and will not be
responsible to anyone other than Vodafone Group Plc for
providing the protections afforded to customers of UBS
Warburg Ltd., or for providing advice in relation to the
transaction.
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