Iliad proposes merger to Vodafone

On Monday, Iliad said that it had sent Vodafone a proposal to combine its Italian businesses. This would consolidate Iliad's rapidly expanding customer base with the British company's commercial force in a fiercely competitive sector.

A person acquainted with the situation stated that the French company's action coincides with Vodafone's investigation into a possible partnership with Swisscom's Fastweb Italian division.

Only established in Italy six years ago, Iliad stated that for the fiscal year ending in March 2024, the combined company is anticipated to produce sales of around €5.8 billion and core earnings (EBITDA) of about €1.6 billion.

In order to guarantee long-term alignment, Vodafone would also get a loan of €2.0 billion from shareholders and 50% of the share capital of the newly combined company, Iliad continued.

Last year, Iliad made an outright bid of €11.25 billion to purchase Vodafone Italy, but it was turned down.

It stated that, in comparison to the 7.1 times multiple proposed last year, the new joint-venture proposal represented an earnings multiple of 7.8 times.

(Sources: investing.com, reuters.com)