March 16, 2005

Just a few days after confirming talks, Vodafone has acquired Telesystem International's wireless assets in Eastern Europe for $3.5 billion in cash.

Under the terms of the deal, Vodafone will acquire a 79 percent stake in MobiFon, which operates in Romania and 100 percent ownership of Oskar Mobile, which offers wireless services in the Czech Republic.

Prior to the deal, Vodafone owned a 20.1 percent stake in MobiFon.

"These acquisitions will create value for our shareholders and will be good for our customers.

They are also consistent with our stated strategy of increasing investment in Central and Eastern Europe," Vodafone Chief Executive Arun Sarin said in a prepared statement.

As part of the deal, Vodafone plans to assume roughly $900 million in debt. Vodafone does not expect the asset purchase to affect its credit ratings.

In terms of when Vodafone expects to see the purchase add to earnings, the operator said, "immediately."

Source: Wireless Week