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Bond holders are merely the first paid. They have no influence or shared liability that a burdens a shareholder. The only influence credit investors have is purchase power, they'll either buy or sell that is it
Sorry moleman your assumption is grossly inaccurate, it's such a moot that I've now checked out of this ridiculous conversation.
Bond holders have more influence than you think.
"Behind the scenes they may be under some pressure from bond holders who don’t want to be holding till 2052 at 5%."
Bond holders aren't shareholders though, if they're not happy with their credit investments they can sell, they don't have any recourse with the company for more advantageous terms.
The markets are currently long on long end credit which creating rate inversion conditions for companies with long end debt and positive cashflow to buy back that debt and refinance on hopefully shorter or cheaper terms.
When yields start falling, borrowing will increase, the transactions in-between are merely bets on central bank pivots.
Hope everyone received their Dividend payments today ;)
ATB.
Sold £3000 poly at 263p today and added vod
The regulators control telecoms. The management have to operate efficiently. Price controls force new products. VOD uses bonds to get the lowest weighted average cost of capital. ROCE is improving year on year at VOD
The bond holders control companies with big debts, just look at Cineworld!
'Behind the scenes they may be under some pressure from bond holders who don’t want to be holding till 2052 at 5%'
Could it be they are secured against an asset disposal and need to be unwound. Most debt after 2030 is 2% coupon or lower
If you read down the Tender offer it says they are going to issue new notes to replace them. They are not suddenly flush with cash.
These new notes may be at a higher coupon. Behind the scenes they may be under some pressure from bond holders who don’t want to be holding till 2052 at 5%.
Will have to wait and see.
95.50p
Jed, I am not expert but I think VOD is offering to buy those notes at par for cash.
Think it saves c$6Bn interest over the remaining years and clears $5.4Bn long term debt.
VOD must be flush with cash to pay dividends and pay down debt
Vodafone Group PLC - Berkshire, England-based telecommunications company - Launches three cash
tender offers for total USD5.4 billion in notes due in 2038, 2043 and 2048. For the notes due May 2038, Vodafone offers to tender USD1.0 billion in 5.0% notes; for the notes due February 2048, it offers to tender USD1.4 billion in 4.375% notes; and for the notes due May 2048, it offers to tender USD3.0 billion in 5.25% notes. Says the tender offers are to be used for managing its outstanding debt portfolio.
I guess this is good news if they can get it all away as they can then pay off/down all the current debt
weak bullish for a rise tomorrow. ADR seemed to fair better and blue after hours
Etisalat came out of India in 2012 and said it intended to reenter.
Until today, E& had c.6 .2% indirect stake in VI (via 13% stake in VOD) and is now c 2.4% indirect. Interesting if the 5G funding comes from UAE
I think VOD would just like the whole thing to go away, so nothing is probably the correct valuation.
Vod closing Sp 10th Feb
Velo 88.9p
Newsid 87.7p
SlartiB 96.8p
WayzGoose 98.6p
Entries closed
Atb
surely we get an RNS to be clear. 18.3% of nothing is nothing
"As a result of this, the Aditya Birla Group’s stake will stand at 31.8%, while Vodafone Plc’s stake will be at 18.3%."
This is different than reported back in January, I thought it was going to be the other way around with Aditya Birla Group owning 17.8% and Vodafone's stake reducing to 28.5%, post the Government equity deal. If this article's correct, Vodafone's stake will drop from 47.6% to 18.3%, whereas the Aditya Birla Group stake will actually increase. If the article hasn't got it the wrong way around, then there must have been some sort of deal around Aditya Birla Group injecting a large amount of fresh capital, with Vodafone maybe agreeing to take the biggest shareholding hit.
'What percentage of Company will they now own after the transaction?'
'As a result of this, the Aditya Birla Group’s stake will stand at 31.8%, while Vodafone Plc’s stake will be at 18.3%. This is a reduction from the existing stake of 75% held by the two promoters.'
https://www.msn.com/en-in/money/markets/vodafone-idea-shares-hit-25-upper-circuit-after-govt-agrees-to-convert-16-133-cr-dues-into-equity/ar-AA179GTW
'....Therefore, the IDEA share price jumped because the going concern challenges that most analysts were expecting have now improved. It also gives the company more breathing space as it battles stiff competition....'
https://invezz.com/news/2023/02/06/vodafone-idea-share-price-surge-could-be-short-lived/
Phew! Only just posting in time by the skin of my teeth, this week.
88.9 please Roofer.
'we see a low probability of Vodafone Idea raising a meaningful amount of external capital'
GS must be disappointed at Aditya commitment.
Vod downside risk reduces in meantime
Maybe to early to get excited following a relief excitement pop
Reuters
The move by the government will only reduce about 7% of the company's 2.2 trillion rupees outstanding debt as of September 2022, which would result in no immediate free cash flow savings, Goldman Sachs analysts said in a note.
"Given the elevated debt profile, continued market share erosion and meaningful network gap versus peers, we see a low probability of Vodafone Idea raising a meaningful amount of external capital," Goldman analysts said.
'What percentage of Company will they now own after the transaction?'
Gov has taken 33.14%. VOD had 47.6%... I imagine there are related transactions within the group to unwind/ execute in the next phase
What percentage of Company will they now own after the transaction?