Vodafone Iceland owner Syn said it has reached an agreement with foreign investors on private negotiations and the main terms for a potential sale and leaseback of passive mobile phone infrastructure. The transaction would strengthen Syn’s balance sheet and might yield a capital gain of over ISK 6 billion. Syn would then sign a 20-year lease-back agreement to ensure its continued access to the infrastructure.
All the active mobile phone equipment would remain in Syn’s possession. The amounts and accounting treatment of the transactions will depend on the final agreements. More information about the plans will be given when Syn announces its third quarter results on 04 November.
The agreement does not imply any obligation or guarantee that the transaction will take place, and it is subject to due diligence and possible involvement of regulatory bodies. There is therefore still considerable uncertainty as to whether and when the transaction will take place.
