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Verizon Vodafone

Vodafone announces $130bn Verizon Wireless sale

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By John Glenday, Reporter

September 3, 2013 | 2 min read

Mobile phone giant Vodafone has announced one of the biggest deals in corporate history after agreeing the sale of Verizon Wireless for an eye-popping $130bn.

The mammoth transaction will see the British business offload its stake in America’s largest mobile phone business in ordcr to plough £54bn back to shareholders and £22bn to investors – with the remainder being allocated toward the rollout of superfast 4G services in Europe.

Vodafone’s sale of its 45 per cent stake to Verizon Communications is the third largest transaction between two companies ever after the American firm succeeded in raising $65bn in cash from four banks for the sale.

Up to 500,000 British shareholders with stakes of up to £10k in Vodafone are expected to pocket up to £4k each as a result of the deal.

Vodafone will use a £6bn share of the proceeds to fund a £6bn makeover of its mobile and fixed networks over the next three years as well as paying off debt.

Questions have been asked about a loophole in UK capital gains tax which saw Vodafone pay no tax on the deal in Britain, but $5bn in the US.

Under the terms of the deal Vodafone will hold $60bn in cash alongside $60bn in Verizon Communications shares and $11bn from a series of smaller transactions.

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