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Vodafone announced Friday it agreed to sell its 25% interest in Proximus to Belgacom for a consideration of EUR 2.0 billion in cash. Belgacom already owns 75% of Proximus which is the leading mobile operator in Belgium.
The consideration implies an Enterprise Value to EBITDA multiple of 7.2x for the financial year ending 31 March 2007. Net cash proceeds to Vodafone are anticipated to be EUR 2.0 billion. Vodafone and Proximus have also signed a revised long-term Partner Network Agreement in Belgium with an initial five year term. This will enable Proximus and Vodafone customers to continue to benefit from Vodafone’s global products and services such as Vodafone live!, Vodafone Mobile Connect Card, Blackberry from Vodafone and international roaming services, including preferred roaming arrangements. In addition, the two companies will continue to co-operate in serving international corporate customers.
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