AFR) 20/09/00 07:07: Vodafone Group PLC - Further stake in Airtel
Vodafone Group PLC - Further stake in Airtel
RNS Number:2175R
Vodafone Group PLC
19 September 2000
VODAFONE ACQUIRES FURTHER 8.48% IN AIRTEL
Vodafone Group Plc ("Vodafone") announces that it
has agreed to acquire an additional 8.48% stake in
Airtel Movil, S.A. ("Airtel") following its
agreement to amend certain conditions relating to
put agreements with shareholders of Airtel. The
completion of the acquisition of this stake is
subject to a number of conditions.
The put agreements which were signed in January this
year, granted Acciona, S.A. ("Acciona"), Torreal,
S.A. ("Torreal") and Corporacion Financiera Alba,
S.A. ("Alba") a series of three sets of conditional
put options in respect of their shareholdings
representing, in aggregate, 16.91% of Airtel.
The amendments are intended to take into account new
factual circumstances that have arisen since
January. The effect of the amendments is to trigger
the exercise of the first set of put options which
has been amended, to account for the disposal of
Alba's entire stake in Airtel. This results in the
increase of the number of shares to be issued
subject to the first set of put options, while
reducing the number of shares to be issued subject
to the second set of put options.
The terms of the put options remain as announced on
22 January 2000, subject to the points set out
below:
* The first set of put options (as amended)
relates to 8.48% of Airtel and the
consideration (if in shares) will be the issue
of a maximum of 569.7 million Vodafone shares,
subject to adjustment in certain circumstances.
Although the amendments have triggered the
exercise of this first set of put options,
completion remains subject to a number of
conditions.
* The second set of put options (as amended)
relates to all or part of the remaining 8.43%
of Airtel held by Acciona and Torreal. The
consideration (if in shares) would result in a
maximum of 613.8 million Vodafone shares being
issued. The maximum number of shares issued as
consideration has been calculated based on a
pound/euro exchange rate of 1.59 and will vary
based on movements in the exchange rate between
the two currencies.
The conditional put options form part of a series of
arrangements designed to increase Vodafone's stake
in Airtel. In June 2000 Vodafone signed a co-
operation agreement with British Telecommunications
plc, which currently holds 17.8% of Airtel, to
acquire additional shareholdings in Airtel. In July,
Vodafone's offer to a group of shareholders to
acquire their shares representing 43.5% of Airtel,
was accepted. Vodafone currently has a 21.7% stake
in Airtel.
Airtel is Spain's second largest mobile phone
operator and currently has over 6m subscribers.
Airtel was recently awarded one of the 4 UMTS
licences in Spain. The company has introduced fixed
line telephony and internet offerings as part of its
strategy to use its wireless customer base to become
a full service telecommunications company.
Through these arrangements, Vodafone aims to
increase its presence in the Spanish market and take
a greater role in the long term development of
Airtel.
In the year ending December 1999, Airtel had
revenues of approximately ESP 333.4 billion, EBITDA
of approximately ESP 75.4 billion and profits after
tax of approximately ESP 24.6 billion. The net asset
value of Airtel according to local accounting
standards as of December 1999 was approximately ESP
119.2 billion. |
