History Article
Close
This article was published on August 6, 2015 at 15:17.
The last change is the August 6, 2015 at 17:03.
Agreement reached for the merger of equals between Wind and 3 Italy that will create the first Italian operator the mobile phone. This was announced by Jean-Yves Charlier, CEO of VimpelCom, the parent of Wind, during a conference call with analysts on the accounts of the first half. Maximo Ibarra, Wind’s current CEO, will be CEO of the new company. Wind is currently the third largest Italian operator 3 Italy fourth. With this merger the major players of the mobile phone so reduce from four to three: Wind-3 Italy, Telecom and Vodafone Italy.
The agreement was signed by Hutchison, now control the mobile operator Italian 3 Italian, and VimpelCom, which controls Wind. With over 31 million mobile customers and 2.8 million fixed (including 2.2 million broadband), integration – said a joint statement by Hutchison and Vimpelcom – expected to realize efficiencies with a present value of over 5 billion euro net of integration costs. Total revenues of the two companies in 2014 amounted to 6.4 billion euro. The deal is one of the largest operations of M & A in Italy since 2007.
The new shares of mobile market
The new operator has the highest market share (data AgCom of July 2015 date to March) in the cabinet with the 33.5% against 32.3 Telecom Italy. Vodafone drops to third place with 27 percent. Primacy also in prepaid, with 34.9%, against 29.1% and 27.7% of Telecom to Vodafone, while the sim subscription number one remains firmly Telecom Italy (45.1% against 28.4 %, Vodafone follows with 24.4%).
No capital increase
Despite the predictions of the vigil, there is no capital increase in new company . According to sources close to the fledgling party entities it will be evaluated just under 22 billion euro, which will help with Wind and Hutchison for 14 billion to about 8 billion. “Through the integration of their activities, 3 Italy and Wind will acquire the size and efficiency needed to continue offering innovative TLC services at competitive prices and to compete in an even more incisive in the Italian market, ‘say the two groups. The joint venture holding company (Hutchison 3G Italy Investments Sarl (the “JV Holdco”) will own 3 Italy and Wind, while CK Hutchison and VimpelCom indirectly will control 50% of the shares of the joint venture. At the end of the operation there will be no obligation for either parent companies to contribute additional funds.
governance
The chairman of the board will be appointed alternately by the two companies every 18 months and his vote will be decisive on some fundamental issues of business. Vincenzo Novari, current CEO of 3 Italy, to full operation, will be appointed senior advisor to CK Hutchison for Italy and will be a member of the board of directors of the joint venture for CK Hutchison. Dina Ravera, current Coo 3 Italy, will lead the integration process and will take on an important role in the top management of the joint venture. Stefano Invernizzi, CFO of 3 Italy, will become CFO of the new company. The transaction, subject to approval of regulatory bodies, including the European Competition Authority, should be completed within 12 months.
© ALL RIGHTS RESERVED
Permalink
No comments:
Post a Comment