Vodafone details share proceeds from Verizon deal

Vodafone has said shareholders will receive 0.026 shares in Verizon Communications for each Vodafone share they own as part of their payout for the $130 billion sale of the group’s stake in Verizon Wireless.

The British telecoms company also said its shares would be consolidated on February 24 at the ratio of 6 new shares for 11 existing shares following the closure of the deal on Friday.

As an illustrative example, based on share prices and exchange rates at the close of business on February 18, a Vodafone investor would receive proceeds of 72 pence in Verizon shares and 30 pence in cash for each share owned, the group said.

Vodafone’s sale of its 45 per cent stake in the largest US wireless group by market share will allow Verizon to gain full control of the mobile operator.

Verizon had been trying to buy Vodafone out of the joint venture – first formed in 2000 – since at least 2007 when the UK mobile group’s then chief executive, Arun Sarin, rejected a $35 billion offer from the US group.

The sale will enable Verizon to retain 100 per cent of the profits that the US wireless business generates and give it full management control, removing the need for it to consult Vodafone on key strategic moves.