Telecoms giant Vodafone Group PLC (VOD.LN) Wednesday said it plans to merge its Malta unit with Melita Ltd. in a deal that values the combined group at 506 million euros ($565.3 million)
Vodafone said the deal won't have a material impact on the group's free cash flow or earnings, and won't be consolidated into its accounts.
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Under the merger, the current shareholders of Melita will own 51% of the combined company and Vodafone Europe B.V., the current shareholder of Vodafone Malta, will own the remaining 49%.
The combined company's mobile and enterprise business will operate under the Vodafone brand and distribute a wide range of services, Vodafone said.
The combined company is also expected generate cost synergies through the rationalization of overlapping activities and greater network investment efficiency it introduces 4.5G, and subsequently 5G, mobile networks and gigabit-capable fixed networks, Vodafone added.
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(END) Dow Jones Newswires
May 24, 2017 02:40 ET (06:40 GMT)