CK Hutchison has agreed to merge its Italian mobile operator 3 Italia, with VimpelCom's WIND mobile. The 50/50 joint venture will see a combined entity with over 31 million mobile customers and 2.8 million fixed line customers (of which 2.2 million are fixed broadband customers). Synergy from the combined business is expected to generate significant Capex and Opex benefits with a net present value, less integration costs, in excess of €5 billion, said both companies in a statement.
The new operations will be led by Maximo Ibarra, the current CEO of Wind. Vincenzo Novari, the current CEO of 3 Italia, will be appointed as senior adviser for Italy to CK Hutchison and will serve as a CK Hutchison nominee on the JV Holdco board after the transaction is completed. Dina Ravera, 3 Italia’s COO, will lead the merger integration process and will remain in a senior operating role in the combined business. Stefano Invernizzi, current CFO of 3 Italia, will become CFO.
Canning Fok, Co-Group Managing Director of CK Hutchison
The combination of 3 Italia and WIND will create a financially sound and efficient operator that is able to compete head-on in the market place. This joint venture will give the combined business the scale and strength to offer Italian consumers and businesses a state of the art network with greater 4G coverage and higher speeds. This transaction underlines CK Hutchison’s continuing confidence in the Italian economy, and its commitment to the development of nationwide digital infrastructure and services in Italy.
Jean-Yves Charlier, CEO of VimpelCom
This is a transformational merger for the Italian market. The two entities will become a leading operator in Europe’s 4th largest telecoms market, delivering a convergent player that will accelerate the ability to invest in the network, services and digital innovations. At the same time, the transaction is a significant milestone for both sets of shareholders given the cost synergies between the two companies which will provide significant long-term shareholder value.
