Vodafone Group has completed the buyout of CK Hutchison Group Telecom’s 49 per cent stake in VodafoneThree for £4.3 billion (€4.9bn). As a result, Vodafone now owns 100 per cent of VodafoneThree, the UK mobile operator and broadband provider. The transaction has been fully funded from existing Vodafone Group cash resources.

The company says that full ownership of VodafoneThree will enable it to move at an even faster pace and capture the significant benefits created through its £11 billion network investment plan and targeted synergies, including £700 million of annual cost and capital expenditure synergies by FY30.

Margherita Della Valle, Chief Executive of Vodafone Group, said: “With full ownership and control, we’ll have the ability to move faster in the next phase of building one of Europe’s leading networks. This best-in-class infrastructure will deliver better connectivity for our customers up and down the country, help drive the UK’s digital economy, and deliver long-term value for our shareholders.”

Consistent with expectations at announcement, Vodafone’s pro forma net debt to Adjusted EBITDAaL is expected to increase by 0.4x.

Vodafone has also confirmed that it has completed the sale of its interests in Dutch venture VodafoneZiggo to Liberty Global.

Under the terms of the deal, Vodafone received €1. billion in cash and a 10 per cent equity stake in Ziggo Group, the new holding company that will own 100 per cent of both VodafoneZiggo and Liberty Global’s Belgian subsidiary, Telenet Group Holding.

As part of the agreement, Vodafone will continue to provide selected services to VodafoneZiggo, including brand licensing. The arrangement is expected to generate approximately €625 million in service-related charges for Vodafone over the next decade.

Vodafone noted that the proceeds from the transaction will be used to reduce the Group’s net debt, supporting its broader financial strategy while maintaining an ongoing commercial relationship with VodafoneZiggo through service agreements.

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Categories: Articles, Broadband, Business, M&A, MNO, Mobile, Telco

Tags: Margherita Della Valle, Vodafone, vodafonethree