17th March 2014
Vodafone shares have enjoyed a hike in early trading as brokers welcome the news that it is to snap-up Spanish cable and telecoms group Ono in a £6bn deal writes Philip Scott.
The transaction will see the group expand its European footprint given that Ono has the largest next-generation network in Spain with 1.9m customers, across 13 of the country’s 17 regions.
By mid-morning trading, shares in Vodafone had firmed by 1% to 224.35p, marking a 15% rise in the stock over the past 12 months.
In a statement Vodafone says the deal will provide it with significant potential to accelerate growth in Spain.
Vodafone Group Chief Executive Vittorio Colao said: “The combination of Vodafone and Ono creates a leading integrated communications provider in Spain and represents an attractive value creation opportunity for Vodafone.
“Demand for unified communications products and services has increased significantly over the last few years in Spain, and this transaction – together with our fibre-to-the-home build programme – will accelerate our ability to offer best-in-class propositions in the Spanish market. We look forward to welcoming the management and employees of Ono to Vodafone and working together to serve our customers across Spain”.
Chairman of the Ono board of directors José María Castellano Ríos added: “This transaction reflects Ono’s attractive position as Spain’s leading provider of high speed broadband, premium pay-TV and fixed communications. As part of Vodafone, Ono will continue to seize new growth opportunities and deliver the quality that our customers expect. The enlarged business is also expected to drive innovation in the Spanish telecommunications industry.”