Vodafone Group (VOD)
Vodafone and Liberty Global complete Dutch JV
Vodafone and Liberty Global have completed their Dutch joint venture, creating a fully-converged national communications operator.
The 50:50 joint venture is called VodafoneZiggo Group Holding BV.
"Combining Ziggo's fibre-rich broadband network with Vodafone's market-leading mobile operation creates a stronger converged competitor in the Dutch market, delivering significant benefits for consumers, businesses and the public sector through investment in digital infrastructure and customer experience," the company said in a statement.
VodafoneZiggo has combined revenue of over 4bn with 10m fixed and 5m mobile Revenue Generating Units (RGUs), and the fastest-growing B2B business in the market.
Following the divestment of Vodafone's consumer fixed business "Vodafone Thuis", the estimated net present value of total synergies for the transaction remains around 3.5bn.
After the recapitalisation of VodafoneZiggo and after taking into account the 0.8bn equalisation payment by Vodafone, Liberty Global will receive 2.2bn and Vodafone will receive 0.6bn in cash payments post-closing.