Boston, MA 04/07/2014 (wallstreetpr) – Spanish cable group Ono, has been able to renegotiate its debt burden after news that it has been acquired by Vodafone Group Plc (ADR) (NASDAQ:VOD) last month, as per Vodafone Spain CEO Antonio Coimbra.
The Spanish company was purchased by Vodafone for EUR 7.2 billion which included EUR 3.4 billion of bank loans and bonds. The terms of the restructuring are however yet to be ascertained.
Coimbra is reported to be positive of receiving European Commission approval for its Ono acquisition in three to four months.
He added that the company would seek to end Ono’s contract with Telefonica. This deal allows Onoto use Telefonica’s network till 2015.
The acquisition of Ono is expected to shake up Spain’s telecoms market with news that France’s Orange is seeking new prospects.
Telecom Egypt Tanks
Telecom Egypt Co., which is the monopoly holder of Egypt’s fixed-line telephone services, saw its stock price tumble after the most in 11 months after the government set a one-year deadline for it to exit to exit from a joint venture with Vodafone to provide mobile services in Egypt
The shares fell to 16 Egyptian Pounds, a drop of almost 8.3 percent. This drop pared the 9 percent advance that the stock had got since the announcement. The deal had given a fillip to the company’s market capitalization, raising it to USD 3.9 billion. Being a major component of the benchmark EGX 30, the slide in the stock led the EGX to a 2.9 percent decline.
Egyptian minister of communicating, Mr. Atef Helmy was reported to have stated that telecom Egypt needs to pay 2.5 billion Egyptian pounds to acquire a fresh mobile license and has a year to hive off its 45 percent stake in Vodafone’s local unit.
The markets have reacted with dismay on this development as it is clearly seen to be detrimental to the company. The company would now no longer be benefiting from investments to be made by Vodafone Egypt and would also take a hit on the revenue from the nascent mobile business.
