Vodafone, Verizon agree on $130 bn deal for Verizon Wireless stake

Vodafone agreed to sell its 45 percent stake in US mobile operator Verizon Wireless to Verizon Communications for $130 billion, bringing an end to one of the longest running corporate standoffs with the world’s third-largest deal.

Under the agreement announced on Monday, which will leave Verizon with 100 percent of the largest mobile operator in the US, Vodafone will receive $58.9 billion in cash, $60.2 billion in Verizon stock and an additional $11 billion from smaller transactions.

[caption id=“attachment_1079829” align=“alignleft” width=“380”] Verizon logo is seen in this file photo. Reuters[/caption]

At completion in the first quarter of 2014, Vodafone shareholders are expected to receive all the Verizon shares and $23.9 billion of cash, which comes to $84 billion flowing back to shareholders.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

“The board, therefore, intends to increase the total 2014 financial year dividend per share by 8 percent to 11 penceand intends to grow it annually thereafter,” Vodafone said.

Reuters