The transaction values the fully diluted equity of HOL at EUR 100 million and is equivalent to an enterprise value of EUR 311 million including HOL's adjusted net debt of EUR 211 million. HOL had 519,000 customers at the end of 2013 and generated revenue of EUR 227.4 million, EBITDA of EUR 68.4 million and capex of EUR 36.7 million last year. The takeover price values the company at 4.5 times annual EBITDA.
Vodafone expects to achieve cost and capex synergies with an annual run-rate of EUR 24 million before integration costs by the third full year after completing the acquisition. The synergies will come from sharing network and IT infrastructure, savings on marketing and bill collections, and rationalisation of overlapping functions. The takeover is expected to close in Q4, pending regulatory approval, after which Vodafone will make a mandatory bid for the rest of HOL's shares.
The takeover is the next step in Vodafone's strategy to expand on the fixed broadband market, after similar takeovers in the past year in Germany and Spain. Vodafone also made a joint bid with Wind Hellas in July to acquire the broadband and pay-TV operator Forthnet. The company did not comment on the progress of that bid. With the takeover of HOL, Vodafone claims the number two position on the Greek market, after incumbent OTE. HOL has an estimated 11 percent of the broadband market as well as a 5,200-km fibre network in Greece.
