Vodafone acquisition

Vodafone the second largest ( behind China Mobile) mobile telecoms company in the world. I have a holding in my income portfolio (epic code: VOD).

 

Vodafone have agreed to acquire Ono for a total consideration equivalent to €7.2bn (£6.0bn) on a debt and cash free basis.

 

Ono is the leading next-generation network operator in Spain with 7.2m homes released to marketing (equivalent to 41% of total homes in Spain), providing its customers with broadband speeds in excess of 200 Mbps and the country's most innovative pay-TV service through TiVo.

 

The Transaction values Ono at a multiple of 7.5x 2013 EBITDA and 10.4x 2013 FCF adjusted for cost and capex synergies. The Transaction is expected to be accretive to Vodafone's adjusted EPS and FCF per share after cost and capex and before integration costs from the first full year post completion.

 

This follows on closely from the Kabel Deutschland acquisition for €10.7bn (13.8x FCF) and £1.9bn for Indian spectrum licenses.