LONDON (Alliance News) - Vodafone Group PLC said Friday that Vodafone Greece has agreed to buy a 72.7% stake in Hellas Online SA from the Intracom Group and World Equities Investments Holdings SA for a total of EUR72.7 million.
Vodafone Greece currently has a 18.4% stake in the broadband and fixed-line telephony company, and the acquisition will take its total holding to 91.2%, meaning it would be obliged to extend a takeover offer for the remaining stake in the company.
The acquisition is subject to antitrust clearance from authorities amongst other conditions. If cleared, its expected to complete in the fourth quarter of 2014.
The company said that the acquisition would help accelerate its unified communications strategy in Greece, and would create a "leading" integrated telecom operator in Greece with a "number two market position by revenues in both fixed-line and mobile communications."
Vodafone expects to make cost and capital expenditure synergies of EUR24 million per year before integration costs by the third full year after completion. It expects to make these savings from share network and IT infrastructure, savings on marketing and bill collections, and the rationalisation of overlapping functions.
It will finance the acquisition via existing cash resources and committed-but-undrawn bank facilities, it said.
Hellas reported earnings before interest, tax, depreciation and amortisation of EUR684 million on revenue of EUR277.4 million in 2013.
Shares in Vodafone were trading up 1.2% at 204.96 pence Friday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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