Vodafone sells Vodafone New Zealand for €2.1bn

14 May 2019 | Natalie Bannerman

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Vodafone Group has announced the sale Vodafone New Zealand to a consortium made up of Infratil Limited and Brookfield Asset Management.

The consortium has agreed to acquire Vodafone New Zealand for an enterprise value of NZ$3.4bn (€2.1bn), which translates to 7.3 times adjusted EBITDA and 16.2 times adjusted operating free cash flow of 2019 financial year.

“An important aspect of our strategy is the active management of our portfolio and deleveraging, which this transaction further demonstrates,” said Nick Read, chief executive of Vodafone Group. “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.”

Once completed, Vodafone and Vodafone New Zealand will enter into a partner market agreement, which will include use of the Vodafone brand, preferential roaming arrangements, access to Vodafone’s global IoT platform and central procurement function, as well as a range of services for the business and consumer markets.

The deal has a tentative completion date of 2020 subject to the customary regulatory approvals.

At the start of the month, Vodafone entered into a definitive agreement with Telefónica Deutschland (Telefónica DE) for cable wholesale agreement in Germany.

Under the terms of the agreement, Telefónica DE will be able to offer high-speed broadband services to customers on Vodafone and Unitymedia’s cable network in Germany. The agreement is subject to the completion of Vodafone’s acquisition of Liberty Global’s operations in Germany, the Czech Republic, Hungary and Romania, which is awaiting approval from the European Commission.

Additionally, back in April Vodafone also expanded its mobile and fixed network sharing agreement in Spain, with Orange.

Under the terms of the agreement, Vodafone is able to offer its customer broadband access and other fixed line services on Orange’s fibre-to-the-home (FTTH) network. Both companies will also explore co-investment opportunities to expand their fibre footprint in the future.