LONDON-Vodafone Group plc said it has agreed on the terms of a cash offer for U.K. corporate market wireless reseller Project Telecom plc for about $249 million. The acquisition would give Vodafone a stronger foothold in the lucrative enterprise market, market watchers said.
Vodafone is offering 70 pence in cash for each Project Telecom share. “Vodafone will be able to access directly Project Telecom’s important customers and enhance the already high levels of customer services and advanced communications services offered by Project Telecom,” said Gavin Darby, chief executive officer of Vodafone U.K. “We look forward to further developing the segment.”
Vodafone said the offer is a premium of about 43 percent to the closing price of Project Telecom’s shares July 10, which is the last business day prior to Project Telecom’s announcement that it was in discussions regarding an acquisition. Vodafone has received irrevocable undertakings to accept the offer representing about 60.2 percent of the existing issued share capital, even in the event of a higher bid.
Last week, four European operators announced details of an alliance that will compete with Vodafone across Europe for the corporate market segment.
