MADRID – Vodafono.
For weeks, Ono’s management had downplayed reported overtures from Vodafone, insisting it would go ahead with a planned Initial Public Offering (IPO). The Vodafone price is good enough, however, to have swayed it: Ten times operating free cash flow, par for the course for recent telco/cable deals in Europe.
Cash flush after selling its 45% stake in U.S. mobile operator Verizon Communications, Vodafone’s Spanish move comes just five months after it completed a $10 billion takeover of German top cabler Kabel Deutschland.
“Ono has the largest next-generation network in Spain with approximately 7.2 million homes released to marketing serving 1.9 million customers in 13 of Spain’s 17 regions,” Vodafone said in a statement Monday.
“It is the market leader in high speed broadband, offering superior speeds and the most innovative pay-TV service in Spain. The network has abundant spare capacity and a future-proof fibre architecture,” the statement added.
With Telefonica aiming to ramp up its TV contents offer in order to double pay TV clients in Spain, a battle royale look set to be served there for high-speed broadband clients. Economic recovery remains sluggish. But high-speed broadband connections are now the latest rage.
Emiliano de Pablos contributed to this article