Vodafone Group said it plans to merge its Malta unit with Melita in a deal that values the combined group at 506 million euros ($565.3 million).
“The Combined Company’s mobile and enterprise business will operate under the Vodafone brand, distribute a wide range of services including Vodafone’s global portfolio of products and services and benefit from access to Vodafone’s extensive expertise in mobile and fixed operations worldwide,” said Vodafone in a statement.
Vodafone said the deal won't have a material impact on the group's free cash flow or earnings, and won't be consolidated into its accounts.
Under the merger, the current shareholders of Melita will own 51% of the combined company and Vodafone Europe B.V., the current shareholder of Vodafone Malta, will own the remaining 49%.
The combined company is also expected generate cost synergies through the rationalization of overlapping activities and greater network investment efficiency it introduces 4.5G, and subsequently 5G, mobile networks and gigabit-capable fixed networks.