Vodafone Group PLC (LSE:VOD) has completed the €8 billion (£6.6 billion) sale of its Italian operations to Swisscom AG.
Vodafone on Thursday said the cash deal had been completed and that proceeds would go to cutting net debt, alongside returning up to €2 billion to shareholders.
Talks over the sale had been signalled as early as last February, with completion paving the way for its Italian wing to be merged with Swisscom’s Fastweb business.
The finalised deal valued its Italian wing at a multiple of 7.6 times consensus adjusted pre-tax earnings, Vodafone said, and saw the highest operating free cash flow multiple of any of its market transactions in the last decade.
Vodafone would continue to provide certain services to its Italian wing for up to five years following the deal, the company added.
“I am thrilled about the successful closing, as it strengthens Swisscom Group,” Swisscom chief executive Christoph Aeschlimann commented in a separate statement.
“At the same time, the focus on the Swiss market remains unchanged.”
Vodafone shares rose 0.7% on Thursday.