CK Hutchison to acquire 100% of Italy's Wind Tre for EUR 2.45 bln

Nieuws Mobiel Italië 3 JUL 2018
CK Hutchison to acquire 100% of Italy's Wind Tre for EUR 2.45 bln
Hong Kong-based CK Hutchison has announced a deal to acquire the 50 percent stake in Italian operator Wind Tre it does not already own for EUR 2.45 billion from Veon. “This is a key step in consolidating an important part of CK Hutchison’s telecom assets, which are being built into a globally relevant platform for the delivery of next generation products and services,” said the company in a statement. The merger of Veon's Wind and CK Hutchison's 3 Italia, one of the largest in Italy in a decade, was first announced in August 2016, with the new company starting operations in January 2017. 

CK Hutchison said the deal to take over sole ownership Wind Tre will secure strong recurring earnings for the years ahead. Last year its original 50 percent stake in the Wind Tre business contributed over EUR 1 billion attributable EBITDA and over EUR 800 million attributable EBIT for the group. Veon, meanwhile, said it expected to book a net gain of some EUR 1.1 billion when the all-cash agreement completes and intends to use the proceeds to pay off debt and reduce its leverage ratio.

Completion of the deal remains subject to regulatory approval in the EU and Italy but is expected to close in the third quarter of 2018. Wind Tre has already completed work to unify the mobile network infrastructure of Wind and 3 Italia in Milan, Bologna, Trieste, Bari and Agrigento, with the process also close to completion in Rome, Rimini, Venice, Ascoli Piceno, Alessandria and Cosenza.

The company reported revenues down 9 percent to EUR 1.4 billion in the first quarter of 2018, attributed above all to strong competitive pressure that has further increased with the recent entry of Iliad as Italy's fourth mobile operator. Before Iliad’s arrival, TIM, Vodafone and Wind Tre each controlled around a third of the Italian mobile market.

Categories:

Mobiel

Companies:

3 Italia,  Veon,  Wind Tre

Countries:

Italië

Tags:

Wireless, M&A buyouts & divestments

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