Mobilezone Exits Germany, Sells Subsidiary to Freenet for €230M
Mobilezone is exiting the German market after years of sluggish growth. The Swiss company has agreed to sell its German subsidiary to Freenet for €230 million. This move comes as Mobilezone aims to refocus on its Swiss operations.
The sale, expected to complete by the end of 2025, will see brands like Sparhandy, Deinhandy, Handystar, and High transition to Freenet. Mobilezone anticipates a loss of German EBITDA and cash flow, but expects to compensate for this in the next three years through growth in other areas.
Mobilezone's expansion into Germany in 2015 initially showed promise, but the business struggled in recent years. The company now plans to invest the sale proceeds in Swiss acquisitions and debt reduction, and may also initiate a share buyback program. By 2028, Mobilezone expects an EBITDA of CHF 70 million and will continue to pay out a dividend of 90 cents per share.
Mobilezone's withdrawal from the German market is a strategic move to refocus on its core Swiss business. The sale to Freenet for €230 million will provide funds for investment in Switzerland and debt reduction, ensuring the company's future growth and stability.
