Vodafone Malta to merge with Melita
Current Melita CEO Harald Rösch is expected to lead the combined unit which will operate under the Vodafone branding
Vodafone has announced plans to merge its unit in Malta with Melita, the country’s cable, broadband and pay TV provider.
The combined company will operate under Vodafone’s branding and offer the UK telco’s global portfolio of products and services.
The deal will create a new communications company offering quad-play packages (mobile, fixed line, broadband and TV services) across Malta, with the aim of competing against Maltese incumbent GO.
Vodafone Malta operates a 4G network in the country that covers around 99% of the Maltese population, while Melita offers fixed broadband packages with download speeds of up to 250Mbps. The combined company is expected to launch 4.5G mobile services as part of its roadmap going forward.
Vodafone said combining with Melita will allow it to generate cost synergies through combining overlapping products, although it did not reveal how much it expects to save.
The transaction will see current Melita shareholders take a 51% stake in the combined company, while Vodafone Europe will hold on to the existing shares. The deal values Vodafone’s Maltese unit at €208 million, while it values Melita at €298 million.
Current Melita CEO Harald Rösch is expected to lead the unit while Vodafone Malta CFO Caroline Farrugia is set to become CFO. Her current boss, Vodafone Malta CEO Amanda Nelson, will be moved to another role within Vodafone, the company said.