Vodafone announces Swedish sale

Vodafone announced today that it has agreed to sell its 100% interest in Vodafone Sweden to Telenor, the pan-Nordic telecommunications operator.

Vodafone Sweden is being sold for an Enterprise Value of €1.035m, implying an Enterprise Value to EBITDA multiple of 11x for the financial year ending 31 March 2006. Net cash proceeds to Vodafone after assumption of net debt by Telenor will be approximately €970 million.

Commenting on the transaction, Arun Sarin chief executive of Vodafone said: "We have a good business in Sweden, but the particular industry structure and regulatory environment means that it makes more sense for our customers, our employees and our shareholders for a pan-Nordic player like Telenor to own the company.

"I'm sure that Telenor will be able to serve our customers well, particularly in the corporate sector, given its presence across the Nordic region."