LONDON (Reuters) -On Monday Mobile operator Vodafone announced the acquisition of Cable & Wireless Worldwide (CWW) for 1.04 billion pounds (1.28 billion euros) to complement its mobile network by a network fixed in the UK to meet the growing demand for transmission capacity data.
World number one mobile phone by the sales explained that this acquisition would make it a leading player in mobile and fixed services to UK businesses, while allowing it to cut costs by using networks CWW in the UK and abroad.
Vodafone will offer 38 pence per share to shareholders of the target, or a premium of 92% of the stock before its first expression of interest in February.
At the London Stock Exchange, the action CWW gained 14% to 36.5 pence to 9:40 GMT. Vodafone was virtually unchanged.
Since its creation by the demerger of Cable & Wireless in March 2010, CWW has issued three warnings about its results, had three general managers and suspended payment of dividends.
Once concluded the purchase, Vodafone will use the 20,500 km of optical fiber networks of its new subsidiary to deliver some of the data currently passing through its mobile networks, traffic boosted by the rise of smartphones.
The group currently leases land lines to BT and other operators.
The transaction will also allow Vodafone to increase its turnover on the corporate segment and key account contracts by integrating voice, data and hosting CWW and its international network.
India’s Tata Communications, which had also expressed interest in CWW, had finally thrown in the towel last week for lack of agreement on price.
Vodafone’s offer, deemed “fair and reasonable” by the board of its target, is supported by shareholders holding 18.6% stake.