PARIS-Vivendi Universal and Vodafone Group plc, joint owners of a mobile operator in France that have each been vying to take full control of the company for months, said they will simplify the group’s ownership structure and increase their cooperation in the business.
The companies said they will cooperate to roll out new products and services, including Vodafone Live! multimedia service later this month, and develop operational synergies in procurement.
The companies will also simplify their complicated ownership structure of both fixed-line operator Cegetel Group and its mobile subsidiary SFR. Under the deal, holding companies Trastel, Cofira and SFR will merge into Cegetel Group, which will be renamed SFR. Vivendi will own 55.8 percent, and Vodafone will hold 43.9 percent of the merged entity. The remaining capital will be held by the former minority shareholders in Cofira.
Pending regulatory and shareholder approvals, the deal is expected to be completed in the fourth quarter.
Vivendi and Vodafone also agreed to pay a quarterly dividend of the merged entity to its shareholders in 2004.
In addition, Vivendi will be able to access available cash pro rata to its shareholding from the merged entity through a cash-pooling agreement, up to a limit of $290 million. Advances under the cash-pooling agreement would be repayable on the date quarterly dividends become payable.
Cegetel Group and SNCF previously agreed to merge Cegetel’s fixed-line business with Telecom Development.
The agreement shows a renewed commitment between the partners after the relationship was strained last year when Vodafone failed in a bid to take control of the profitable French mobile operator SFR.
