Belgacom buys Vodafone stake in mobile unit for 2 billion euros
August 27th, 2006 - Posted in OtherBelgian telecommunications operator Belgacom said it was taking full control of its Proximus mobile phone unit by buying 25-percent stake for two billion euros (2.55 billion dollars).
Proximus and Vodafone have also signed an agreement to maintain commercial cooperation for the next five years, which covered areas such as buying activities, mobile services, mobile products and roaming, Belgacom said in a statement Friday.
Belgacom chief executive Didier Bellens said: “The agreement with Vodafone will allow us to strengthen the cooperation within our group, and respond to the market trend towards convergence by focusing on delivering fully integrated solutions to our customers.
“The group now has all the necessary assets to address the current market evolutions, while maintaining its leadership position in Belgium.”
Vodafone chief executive Arun Sarin said in a separate statement that his company did not consider itself “the most appropriate long-term holder of this minority stake.
“In line with our strategy of actively managing our portfolio and maximising returns, we have achieved an attractive price with this sale,” he added.
Meanwhile, Belgacom said it was selling its 5.8 percent stake in French telecommunications group Neuf Cegetel to French operator SFR for 187 million euros and that it expected a capital gain of 67 million euros.
The company said its board had also approved a share buyback worth up to 200 million euros and that an interim 2006 dividend totalling 100 million euros, which would be paid before the end of the year.
Belgacom shares added 1.99 percent in mid morning trading to 27.69 euros, outpacing a 0.38-percent gain on the Bel-20 index of leading Belgian stocks to 3,901.15 points.
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