Vodafone and rival Melita to combine telecom operations in Malta

Vodafone India SIM cardsVodafone Malta and rival Melita will combine their telecom operations in Malta, Europe in a deal valued at nearly €500 million — to take on GO.

Vodafone Malta will own 49 percent, while Melita will hold 51 percent stake in the combined telecom operator.

The integrated telecommunication company will operate under the Vodafone brand and distribute a range of mobile, fixed broadband, fixed telephony and TV services and enterprise business products and services.

The combined company will be in a stronger position to compete with the integrated incumbent, GO, ensuring sustainable consumer choice over the long term.

The combined company is expected to generate cost synergies through the rationalisation of overlapping activities and greater network investment efficiency. The combined company will introduce 4.5G, and subsequently 5G, mobile networks and gigabit-capable fixed networks.

The combined company’s debt is expected to be €345 million. Vodafone will receive a cash payment of €120 million which will be used for general corporate purposes. Melita’s shareholders will receive an estimated cash payment of €33 million.

Harald Rosch, CEO of Melita, will be the CEO of the combined company. Caroline Farrugia, CFO of Vodafone Malta, will be the CFO of the combined company. Vodafone will announce a new role for Amanda Nelson, the current CEO of Vodafone Malta.