French telecoms group Iliad is understood to have offered more than €11bn for Vodafone’s Italian business, it was reported on Thursday.
Vodafone declined to comment on the report. But according to the Financial Times, the bid by Iliad – which is controlled by French billionaire Xavier Niel – represents a valuation of roughly seven times earnings before interest, taxes, depreciation and amortisation. Iliad is thought to have lined up financing with a large European bank and an investment fund, the FT added, citing unnamed people familiar with the matter.
Should the deal go ahead, it would transform Iliad’s position in the Italian market. It currently has a market share of just 8%, after launching in the country in 2018. In contrast, Vodafone has around 28% of the market, which is the London-listed group’s third-biggest revenue market after Germany and the UK.
It would also propel Iliad above Telecom Italia, which is itself subject to a takeover approach from KKR. The US buyout giant has offered €0.505 a share in cash, giving the company – which has around €23bn of debt – an equity value of €10.7bn.
As at 1015 GMT, shares in Vodafone were largely flat at 140.22p. Niel took Iliad private last year after acquiring the 30% of the company he did not already own for €3.1bn.
