Vodafone and Cable & Wireless Worldwide have reached agreement on a deal that will see the mobile operator take ownership of the struggling cable operator in a deal worth £1.04bn.

Under the terms of the deal, CWW shareholders will receive 38p per share in cash, which Vodafone points out, represents a premium of 92 per cent to the closing price of 19.8 pence per CWW Share on 10 February 2012, which was the last business day prior before the offer period. CWW’s board is recommending the offer to shareholders. 

Vodafone says the acquisition of CWW will strengthen its enterprise business in the
UK and internationally, and presents attractive network and other cost saving opportunities for Vodafone Group.

“We are pleased to reach agreement with the Board of Cable & Wireless Worldwide, who unanimously recommend our offer,” says Vodafone Group CEO, Vittorio Colao. “The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market, and brings attractive cost savings to our UK and international operations. We look forward to working with the management and employees of Cable & Wireless Worldwide to combine our expertise for the benefit of our customers and shareholders.”