Vodafone Announced Earlier Binding Agreement To Sell 100% Of Its Italian Operations To Swisscom For €8B Cash
Portfolio Pulse from Charles Gross
Vodafone Group Plc has finalized the sale of its Italian operations to Swisscom AG for €8 billion in cash. This transaction is part of Vodafone's strategy to right-size its portfolio, focusing on markets where it has strong positions and local scale. The sale price is considered attractive, representing about 26 times the consensus operating free cash flow and 7.6 times the consensus adjusted EBITDA for FY24. Following this sale, Vodafone plans to rebase its dividend to 4.5 cents per share from FY25, return €4 billion to shareholders through buybacks, and maintain a new leverage range.
March 15, 2024 | 9:05 am
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Vodafone completes the sale of its Italian operations to Swisscom for €8 billion, indicating a strategic portfolio adjustment. The company plans to rebase its dividend to 4.5 cents per share from FY25, initiate €4 billion in share buybacks, and adjust its leverage range.
The sale of Vodafone Italy to Swisscom for €8 billion is a significant portfolio adjustment for Vodafone, indicating a strategic shift towards optimizing its operations in key markets. The attractive sale valuation and the subsequent financial strategies, including dividend rebasing, share buybacks, and leverage adjustment, are likely to be viewed positively by investors, potentially leading to a short-term positive impact on Vodafone's stock price.
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