Vodafone Group PLC on Wednesday confirmed that it is in exclusive discussions with Swisscom AG regarding a potential sale of Vodafone Italy to Swisscom for cash.

Shares in the Berkshire, England-based telecommunications company were up 3.7% to 70.96 pence each in London on Wednesday morning.

Subject to confirming binding transaction documentation, the parties have agreed that Swisscom will acquire Vodafone Italy for an enterprise value of €8 billion on a debt and cash free basis.

‘Vodafone has engaged extensively with several parties to explore market consolidation in Italy and believes this potential transaction delivers the best combination of value creation, upfront cash proceeds and transaction certainty for Vodafone shareholders,’ Vodafone said.

Back in December, Bloomberg reported that Swisscom was weighing an offer for Vodafone’s Italian business.

Before that, Vodafone confirmed it was ‘exploring options with several parties’ to combine or sell its telecommunications operations in Italy. The announcement by Vodafone followed a statement by French peer Iliad SA earlier saying it has submitted a proposal to the UK company to create a new joint venture company that combines Vodafone Italia and Iliad Italia.

‘There can be no certainty that any transaction will ultimately be agreed,’ the company warned.

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