Ad hoc announcement pursuant to Art. 53 LR
With regard to the information published by the media concerning a potential transaction in Italy, Swisscom confirms that it is in advanced exclusive negotiations with Vodafone Group Plc with respect to an acquisition of 100% of Vodafone Italia S.p.A. for cash. Swisscom plans to merge Vodafone Italia S.p.A. with Fastweb, Swisscom's subsidiary in Italy.
While the full terms of the transaction are yet to be defined, Swisscom and Vodafone Group have agreed on a preliminary purchase price for Vodafone Italia of EUR 8bn on a cash and debt-free basis. It is expected that any transaction would be value and cash flow accretive to Swisscom and that, following the acquisition, Swisscom would retain at least an 'A' corporate credit rating and that there would be a positive impact on Swisscom's dividend policy.
Fastweb has been growing continuously in terms of customers, revenue and adjusted EBITDA for ten years and has established itself as a leading player in Europe's fourth largest broadband market. The planned merger of Vodafone Italia and Fastweb would bring together complementary high-quality mobile and fixed infrastructures, competencies, and capabilities to create a leading converged challenger. The increased scale, more efficient cost structure and significant synergy potential would enable the combined entity to unlock value for all stakeholders. The transaction would be a key step to allow Swisscom to fulfill its objective to achieve long-term value creation in Italy and would be fully compliant with the Federal Councils' strategic objectives for Swisscom.
There can be no certainty that any transaction will ultimately be agreed. If required, a further announcement will be made when appropriate.
Swisscom AG
SCMN / Valor 874251 / ISIN CH0008742519
Group Media Relations
CH-3050 Bern
Phone +41 58 221 98 04
E-Mail media@swisscom.com
www.swisscom.ch
Disclaimer
This notification contains forward-looking statements. In this notification, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives.
Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Swisscom’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors detailed in Swisscom’s and Fastweb’s past and future filings and reports, including those filed with the U.S. Securities and Exchange Commission and in past and future filings, press releases, reports and other information posted on Swisscom Group Companies’ websites.
Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication.
Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.
