Vodafone Sells New Zealand Arm for $2.2 Billion to Infratil, Brookfield Consortium
May 13 2019 - 1:06PM
Dow Jones News
By Adam Clark
Vodafone Group PLC (VOD.LN) said Monday that it has agreed to
sell its New Zealand business to a consortium of Infratil Ltd.
(IFT.NZ) and Brookfield Asset Management Inc. (BAM).
The buyers will pay a cash price equivalent to an enterprise
value of 3.4 billion New Zealand dollars ($2.2 billion), Vodafone
said.
Vodafone New Zealand generated adjusted earnings before
interest, tax, depreciation and amortization of NZ$463 million on
revenue of NZ$1.99 billion in fiscal 2019.
The deal is expected to be completed during Vodafone's fiscal
2020, subject to regulatory approval. On completion, the parties
will enter a "partner-market agreement" including use of the
Vodafone brand, preferential roaming arrangements and access to
Vodafone's procurement functions.
"An important aspect of our strategy is the active management of
our portfolio and deleveraging, which this transaction further
demonstrates. We have always been proud of our Vodafone New Zealand
business, which has a great team, and we look forward to a
continued close relationship through our partner-market agreement,"
Vodafone Chief Executive Nick Read said.
Write to Adam Clark at adam.clark@dowjones.com
(END) Dow Jones Newswires
May 13, 2019 12:51 ET (16:51 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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