Vodafone completes sale of its Italian operations to Swisscom

Vodafone Group Plc has completed the sale of its Italian operations ("Vodafone Italy") to Swisscom AG ("Swisscom") for €8.0 billion in cash.

The transaction values Vodafone Italy at a multiple of 7.6x consensus Adjusted EBITDAaL and c.26x OpFCF for FY24, representing a premium to the Group’s trading multiple and the highest OpFCF multiple of any Vodafone market transaction in the last 10 years.

Swisscom Acquires Vodafone Italy

As part of the transaction, Vodafone and Swisscom have entered into an agreement whereby Vodafone will continue to provide certain services to Vodafone Italy for a period of up to five years post deal completion.

Proceeds from this sale will be used to reduce Vodafone Group net debt and the Board will target to return to shareholders up to €2.0 billion, as already expressed in the announcement of the transaction dated 15 March 2024, once the current buyback programme has completed.

Vodafone is a leading European and African telecoms company. It provides mobile and fixed services to over 330 million customers in 15 countries, partner with mobile networks in 47 more and have one of the world’s largest IoT platforms. In Africa, its financial technology businesses serve almost 83 million customers across seven countries – managing more transactions than any other provider.

Vodafone's purpose is to connect for a better future by using technology to improve lives, businesses and help progress inclusive sustainable societies. The organisation is committed to reducing its environmental impact to reach net zero emissions by 2040.