VMO2 - comment
The VMO2 merger of its B2B business with Daisy Group will be a non-cash deal. VMO2 will have 70% of the combined B2B business, which implies 35% EBITDA margins for VMO2 vs 25% at Daisy (based on assumed FY2024 figures from Daisy). The merger seems to include the IT business of Daisy Group, which is a surprise. The rationale is to increase VMO2’s reach in the business arena. As a non-cash deal, it does not address the cash flow impact of postponing the partial sale of the Network business.