Vodafone Shareholders Approve $130 Billion Sale of Verizon Wireless Stake
Published on: 28th Jan 2014
By: Ian Mansfield
Vodafone Group's shareholders have voted overwhelmingly in favour of the company's plans to sell its 45% stake in Verizon Wireless.
Of the shareholders who voted on the plan, 99.08% were in favour of the USD130 billion sale.
Vodafone is getting USD58.9 billion in cash and USD60.2 billion in Verizon shares from the sale. At completion, Vodafone shareholders are expected to receive all the Verizon shares and USD23.9 billion of cash totalling US$84 billion, representing 71% of the met proceeds.
As part of the deal, Vodafone will acquire Verizon's 23% minority interest in Vodafone Italy for USD3.5 billion, thereby securing full ownership of the Italian subsidiary.
The shareholders also had to vote on a number of other issues related to the sale, and agreed to buying back Verizon Wireless' stake in Vodafone Italy and the plan to return much of the proceeds from the Verizon Wireless sale to the shareholders in the form of a special dividend.
The deal now just needs the approval of Verizon shareholders to go ahead, which is also expected to be a formality for the company.
Verizon shareholders have also voted to approve the deal, although the voter results have not been released yet so we don't know by what margin they approved the deal.