The country's largest telecommunications operator, Swisscom, says it has concluded a partnership deal between its mobile phone division and the British Vodafone group. In a statement on Monday, Swisscom said that Vodafone had taken a 25 per cent stake in Swisscom Mobile in a deal worth SFr4.5 billion ($2.6 billion).This content was published on April 2, 2001 - 12:20
The statement added that the agreement with Vodafone, which is Europe's biggest mobile communications operator, paves the way for Swisscom Mobile to develop UMTS technology and assures access to the pan-European market of third-generation mobile communications.
Vodafone has paid the first tranche of SFr2.2 billion partly in shares and partly in cash (SFr25 million). After all transaction costs have been deducted, net revenues for Swisscom amount to SFr2.1 billion for the first tranche.
The total purchase price of SFr4.5 billion for the 25 per cent shareholding is based on a valuation of Swisscom Mobile at SFr18.5 billion and net debt of SFr500 million.
The remaining SFr2.3 billion in payment must be made within 12 months of completion of the deal.
Swisscom said it would invest the revenue in core business growth areas, including the construction of a UMTS network, upgrading the fixed network for broadband services and expansion in e-commerce.
swissinfo with agencies
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