One of Europe’s biggest mobile carriers: Vodafone has acquired the assets of Cable and Wireless Worldwide for £1 billion ($1.7 billion). The deal will definitely going to pitch quite high for rivals in the country. Cable & Wireless, once one of the biggest operators in Europe, has fallen on hard times more recently and has run through three chief executives since a restructuring in 2010. With this, Vodafone got a whole new opportunity to offer networking services for enterprises.
According to Vodafone’s statement to the market, Vodafone will offer C&W shareholders 38 pence in cash for each C&W share, a premium of 92 percent to C&W’s closing price on February 10 (when Vodafone had first made its offer). It says that both sides have reached agreement on that deal and that C&W directors will recommend the buy to shareholders.
Under the terms of the Offer, CWW Shareholders will be entitled to receive 38 pence in cash for each CWW Share held, representing a premium of approximately:
- 92 percent to the Closing Price of 19.8 pence per CWW Share on 10 February 2012 (being the last Business Day prior to the commencement of the Offer Period); and
- 107 percent to the average Closing Price of 18.4 pence per CWW Share for the three months ended 10 February 2012.
- The Offer values the entire issued ordinary share capital of CWW at approximately £1,044 million. The Offer price of 38 pence per CWW Share is final and will not be increased. Vodafone reserves its right to increase the Offer if a third party announces a possible offer or offer for CWW.