Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Thanks for posting Porsche. Excellent timing, SP is shooting straight up.
Porsche, you have been promising the divi cut, actually the suspension of the divi, since beginning of last year.
Why post BS when it keeps being wrong?
Thanks pokerchips, I missed that.
" Can anyone explain why Vodafone would reject takeover valuing Italy at over 11b, merger valuing company at 10.45b only to accept takeover valuing company at 8billion."
You are not comparing like for like
Iliad is Enterprise value which included debt and cash , whilst Swisscom excludes debt and cash
plus..they have not accepted anything yet ....Swisscom main shareholder appears to be against the move
After Italian sale still 22 billion in debt with another 10 billion in lease liabilities, utterly terminal. No growth and a declining market. Get ready for dividend cut and share price at .48.
So what was the first offer Vodafone rejected in Spain?
All companies always reject the first bid hoping they will come back with better offer. This doesn't happen all the time as we all know few current companies did that and never received a 2nd bid. Their SP has dropped to pre bid price or lower The next bidder after few months may not offer the same or better bid as circumstances changed as the premium dropped because underlying share price is lower.
I would argue that JV would have been simpler than a sale. VOD have over 5000 employees in Italy, proportion of which are in group functions (e.g. Vodafone Business). Same issue as with Spain - their carrier function is based in Spain for a start. Risk is that they spend the next decade unwinding these functions instead of focusing on core business.
They overplayed their hand turning down Illiad, got into talks over a combination which still left them with the headache of a JV and are now having to consider a sale below asset value to get cash. This is the hidden pressure of too much debt and an insane commitment to keep paying a div they can't afford.
I suspect E& is behind the decision - Its a neutral disposal reducing debt and removing assets of no interest to E&. For other investors, it feels like BOD is not looking after our interests. I will look for exit.
I agree Jes it seems absurd, surely no one is that stupid, there must be some rationale. sadly the market takes a dim view.
" In 2022 Iliad offered 100% of Vodafone Italy for value of 11b. This was rejected as not in best interest of shareholder. "
yes...but it was a preliminary indication of interest, full cash offer from Iliad and Private Equity ...." Iliad said its full cash offer had merits, including "a very high premium for Vodafone Italy".... non contractual at that early stage
..no judging the final price would have been 11.25b euro though ...as they could have been access to the books and downgraded their value ...... and ..who knows...maybe VOD thought that is what they intended ...and if they walked away..at least they had a good eye at the Italy accounts
https://www.barrons.com/news/vodafone-says-rejects-iliad-approach-for-italian-arm-01644505508
In 2022 Iliad offered 100% of Vodafone Italy for value of 11b. This was rejected as not in best interest of shareholder.
Just over a month ago Iliad proposed a merger valuing Vodafone Italy at 10.5b. This was rejected again.
Vodafone now announces a sale valuing Vodafone Italy at 8b.
As far as BOD keeping busy selling assets, anyone can sell £1 coins for 90p - it doesn't make you effective or successful.
In conclusion Beo, would you say this deal is good, average or bad
Plus, the Illiad offer was a 50/50 split. Italy makes returns below the cost of capital, so effectively yes we get some money upfront, but every year we own % in the NewCo we are going to have to pump more loans into it, so effectively reducing the value of that offer year after year, Plus Illiad wanted to slowly take 100% ownership over multiple years, so basically putting it own a payment plan on todays value of money, so thus making the consideration less due to time value of money (plus the fact we would need to subsidise % of a loss making business in the meantime).
I think the 11b was the value of the merged Italy business, not the implicit value we were getting for giving away a proportion of the business
So looking into something similar today,
Italy & Spain for a combined enterprise value of £11.5b if you extrapolate by revenue that puts an MCAP of £23.1b or 85p. But Italy & Spain are effectively loss making, so if you use the EBITDAaL numbers to gross it up instead, then puts an MCAP of £34.4b or 127p. I wanted to add UK to it, as the merger has an implicit value to it, but we are the "purchaser" in that so not sure its good to include anyway.
Can anyone explain why Vodafone would reject takeover valuing Italy at over 11b, merger valuing company at 10.45b only to accept takeover valuing company at 8billion. How does the BOD explain this to shareholders - its the worst possible outcome.
The Net Debt figure will drop simply as a result of holding more cash on the balance sheet
This is where things currently stands according to Vodafone's Bonds outstanding (EU and US) page:
https://investors.vodafone.com/debt-investors/bonds-outstanding-eu-and-us
https://docs.google.com/spreadsheets/d/e/2PACX-1vRA1ndHTf_Bz7O_moDxmcbWnEtcusZucUu6lEJvm3O4mGooeH4ErFjRqot3RQHBaVXCgoUED1k2CUVK/pubchart?oid=17624073&format=interactive
https://docs.google.com/spreadsheets/d/e/2PACX-1vRA1ndHTf_Bz7O_moDxmcbWnEtcusZucUu6lEJvm3O4mGooeH4ErFjRqot3RQHBaVXCgoUED1k2CUVK/pubchart?oid=1681133451&format=interactive
For those who say that nothing is going on here quite a bit has been completed or is in the pipeline. Please don’t think I’m bigging up the overpaid BOD (they have the charisma of a 3 week old British Rail sandwich) but stuff has been / is being done … Vantage Towers monetised.
Ghana gone.
Hungary gone.
Voda Egypt transferred to Vodacom.
Spain sold subject to contract.
Italy poss sold subject to contract.
Voda combo with Three agreed subject to review by regulators.
Headcount reduction of 11000 of which one third done. (ADVFN)
I for one hope that a reduction in debt will prevail from asset sales, this would make this company a better bet for a takeover.
Vodafone Group Plc has confirmed that it is in exclusive discussions with Swisscom AG regarding a potential sale of Vodafone Italy. The parties have agreed that Swisscom will acquire Vodafone Italy for an enterprise value of €8 billion on a debt and cash free basis and subject to customary closing adjustments. This enterprise value represents a multiple of approximately 26x consensus FY24F OpFCF and approximately 7.6x consensus FY24F Adjusted EBITDAaL. These figures are based on company compiled consensus as at February 2024.
Apparently 8 billion Euros is being discussed, at approximately a 7x p/e (according to The Times online). Seems on the low side.
Ok Daniel, you probably have a point to be fair. I've allowed my poor investment decision to get to me and that's never good. I guess that's my fault and not Margherita's! Let's hope we all have a change of fortune here soon. All the best.
£20bn?
Garonne. Of course you are entitled to your views, & so am I. You think the C.E.O. is an idiot, & I think you are. Get over it. Try not to keep repeating yourself please, because it is boring. I don't need to filter you, you can filter me if you like. Better still just sell & stop moaning please. I am not telling you what to do, just a suggestion. By the way, there are far more offensive words used on here than idiot, or do you find expletive insults less offensive which many use on here. Not you though to be fair. I think you need (just a suggestion) a week off from your constant, negative posting on here. It might help you.