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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.
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(END) Dow Jones Newswires
May 13, 2019 12:51 ET (16:51 GMT)
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