Vodafone Greece has agreed to purchase CYTA Telecommunications Hellas, in a deal believed to be worth €118 million. CYTA is a Cypriot telecoms provider, with CYTA Hellas being its Greek subsidiary…
Vodafone Greece has agreed to purchase CYTA Telecommunications Hellas, in a deal believed to be worth €118 million. CYTA is a Cypriot telecoms provider, with CYTA Hellas being its Greek subsidiary. The company provides fixed line broadband services to 300,000 people in Greece, a market share of 8%. The company also has around 40,000 mobile customers. CYTA Hellas owns a fibre optic next generation network and already offers mobile services through an MVNO with Vodafone Greece.
"The acquisition provides further scale and momentum to Vodafone’s fixed line and convergence strategy in Greece, building on the successful acquisition and integration of Hellas Online in 2014. Through this acquisition, Vodafone Greece will expand its fixed network, increase its customer base and secure additional capabilities and expertise for the benefit of its customers and Greek consumers in general," said Vodafone in a statement to the press.
Vodafone currently provides around 700,000 broadband connections in Greece, so the addition of 300,000 CYTA connections will push Vodafone over 1 million connections across Greece, according to a report in Greek newspaper Ekathimerini. The deal is expected to complete soon, with the possibilitiy that it could be signed prior to elections in Cyprus, scheduled for 28th January 2018.
The acquisition is subject to a number of conditions, including antitrust clearance by the relevant competent authorities.
Vodafone Group's shares were trading steadily at £2.268 per share following the announcement.