Vodafone sells Verizon Wireless stake for $130bn

Deal said to be one of the largest in corporate history

Tags: USAUnited KingdomVerizon WirelessVodafone
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Vodafone sells Verizon Wireless stake for $130bn Vodafone will invest an additional $9.3bn in its operations in the next three years. (Getty Images.)
By  Roger Field Published  September 3, 2013

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

The deal, which is one of the biggest in corporate history, consists of $58.9bn in cash; $60.2bn in Verizon shares; $5bn in Verizon loan notes; and $3.5bn in the form of Verizon's minority interest in Vodafone Italy. Verizon will also take on $2.5bn 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 $84bn.

Vodafone intends to invest at least some of the remaining funds in an "organic investment programme" that will see it spend $9.3bn 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.

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