Vodafone Group Plc (“Vodafone”) has completed the sale of 100% of Vodafone New Zealand Limited (“VFNZ”) to a consortium comprising Infratil Limited and Brookfield Asset Management Inc. for a cash consideration equivalent to an Enterprise Value of NZ$3.4bn (€2.1bn1 ), implying an FY’19 multiple of 7.3x Adjusted EBITDA2 and 16.2x Adjusted OpFCF3 .4
Vodafone and VFNZ have now entered into a Partner Market agreement, which includes use of the Vodafone brand, preferential roaming arrangements, access to Vodafone’s global IoT platform and central procurement function, and a range of services for the business and consumer markets.
Proceeds from the sale will be used to reduce Vodafone’s net debt.
Nick Read, CEO, Vodafone Group, said: “This transaction is a continuation of our strategy to optimise our portfolio and reduce our debt. I am pleased we will continue our 21-year relationship with the business and talented team in New Zealand through a Partner Market agreement, delivering Vodafone’s technology and services to benefit the country as it transitions to a digital society.”
1 Converted from NZ$ to € at a rate of 1.6464 (as of 31-Mar-19)
2 Net of pro-forma Vodafone Partner Market Agreement service fees
3 Adjusted OpFCF defined as Adjusted EBITDA minus capex
4 The selling entity is Vodafone Europe B.V., a 100% owned indirect subsidiary of Vodafone Group Plc
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