Vodafone sells Verizon Wireless stake for $130bn

Vodafone to invest additional $9.3 billion in its operations in next three years
Telecoms M&A, Verizon deal, Vodafone, Vodafone sells Verizon Wireless stake for $130 bil

Share

UK mobile group Vodafone has agreed to sell its 45% interest in its US joint venture, Verizon Wireless, to Verizon Communications Inc for $130 billion.

The deal, which is one of the biggest in corporate history, consists of $58.9 billion in cash; $60.2 billion in Verizon shares; $5.0 billion in Verizon loan notes; $3.5 billion in the form of Verizon’s minority interest in Vodafone Italy. Verizon will also take on $2.5 billion of Vodafone net liabilities relating to the US Group.

Vodafone shareholders will receive 71% of the proceeds of the deal in shares and cash, amounting to $84 billion.

Vodafone intends to invest at least some of the remaining funds on an “organic investment programme” that will see it spend $9.3 billion in its network over the next three financial years.

Vittorio Colao, CEO, Vodafone Group, said that the deal would “greatly enhance Vodafone’s long-term prospects” through Project Spring, a programme of organic investments in 4G, 3G, fibre and broadband, enterprise services across all of the telco’s markets.

“Project Spring will strengthen and accelerate our existing Vodafone 2015 strategy, enabling us to take even greater advantage of the growing global demand for ubiquitous high-speed data,” Colao said. “This will in turn underpin our intention to grow the dividend per share annually, in line with our track record of providing shareholders with sustainable and high quality returns.”

The deal is expected to reach completion in Q1 2014.
 

REGISTER NOW | Webinar Event | Life’s a breach - a not so average day in the life of a CISO

Presented in partnership with security and network specialist Cybereason, the first in the three part webinar series will examine the lessons learned from Careem’s high profile data breach. During this free to view, hour long webinar, we’ll hear from Careem’s ex-CISO, Owen Connolly, about how he overcame the challenges associated with such a high profile breach.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story