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Topped up Monday £500 at 85.8p
Sparz, yes I think 20 years ago there was a 'cambridge blue ' regulatory culture ...and then prices declined into a fully competitive market.lol. At these low levels the guiding political authority in europe includes players such as Eva Kaili who was recently suspended from her position as European Parliament VP for corruption. I just hope her involvement with a ME state isnt a repeat of NMC or Finablr and the VOD/ E& development is a successful fusion of islamic finance and capitalism emerging from a chaotic market. The Africa model has plenty of evidence the build for the next phase represents the interests of each sovereign state, or housekeeping as an earlier post put it. I am positive long term..
Can't help but think this should be the low.. Having worked with them 20yrs ago and observed their level of arrogance and serious lack of self-awareness that got them into this position. I hope the new leadership can inspire them to evolve to anticipate their customers needs better..... Before its too late.
Heating up
https://www.ig.com/uk/news-and-trade-ideas/vodafone-shake-up-leaves-share-price-cold-221213
:D
'paying down €2Bn debt due 2028'
4.375% for another 6 years suggests c€0.5Bn interest saved (and debt has been reduced).
Truss?
nice choice Kwasi Kwarteng as FD, vod needs to go more in debt to grow.
How about Kwasi Kwarteng as FD?
Just heard they have managed to get Sam Bankman Fried on board.
@meshtrader
for you mate ..did you see ?
https://twitter.com/zerohedge/status/1602511820643860481
This is good news? paying down €2Bn debt due 2028 at a discount.
Good news for those calling for debt to be paid down early.
Have I misunderstood, sorry if so.
https://www.lse.co.uk/rns/VOD/vodafone-announces-early-results-of-tender-offer-yo0heanplg6ixc0.html
"The actual profit depends on the revenue they have lost compared with any gains they make from the £2B"
It's more complicated than that. Since Vodafone now owns 65% of Vodacom, Vodafone still indirectly benefits from the Egypt income via Vodacom. Vodafone has received €577 million in cash, so that immediately adds to Vodafone's top line. The €1.67 Billion in Vodacom new shares, could increase in value dependant on Vodacom's future earnings, with Vodacom likely to see growth going forward.
they need to sell down assets to pay of debt. Vodacom may attract premium.
"mehmehmeh, why are you so keen for Vodacom to miss out on future growth markets?"
I meant to say.
mehmehmeh, why are you so keen for Vodafone to miss out on future growth markets?
"Hopefully they reduce debt by selling the shares."
If Vodafone sell their Vodacom shares, they lose exposure to any future growth in Africa and they lose any future growth in profits from M PESA, why would they do that? Especially when Telecom sector valuations are depressed. Even if Telecoms was currently a high priced sector, a decision to sell out of Vodacom would be a strange decision to make.
mehmehmeh, why are you so keen for Vodacom to miss out on future growth markets?
The actual profit depends on the revenue they have lost compared with any gains they make from the £2B
They haven’t made 2bn profit. They have transferred 2bn of assets from one place to another.
Don’t see any noise about them now selling the 65% of vodacom to pay debt.
Hopefully they reduce debt by selling the shares.
"They made about £2B on this"
The RNS states:
"Vodafone has been issued with 242 million shares in Vodacom and received cash proceeds of €577 million in exchange for its 55% shareholding in Vodafone Egypt."
The current price of Vodacom shares is 12,793 ZAC, or 127.93 ZAR. 1 Rand is equal to 0.054 Euro, so the Vodacom price per share is equivalent to €6.9 per share.
6.9 x 242 million = €1.67 Billion
€1.67 Billion + €577 million = €2.25 Billion (£1.93 Billion)
So not far of £2 Billion in total
They made about £2B on this
A lot going on Thursday & Friday this week data wise on both sides of the Atlantic none of which looks like good news & which will have a bearing on the SP’s inc VOD. I fear no Santa Rally this year & a little drop in the SP here but thereafter I see a climb upwards.
My new year resolution / prediction for 2023 is VOD to be £1 by 1 Feb. Institutional investors will want gains here in their ‘23 figures (too late for this year) so expect some good buying here early Jan.
It's what my former corporate investor job would call a "housekeeping" move. So not an immediate effect on the SP but all good for the longer term. Some overheads will be rationalised and this will trickle down to the Group's bottom line
'But Do we get any benefit from this deal..??????'
This is an early article with the rationale..
'Vodafone Group announced a move to transfer its 55 per cent holding in Vodafone Egypt to its sub-Saharan Africa subsidiary Vodacom in a deal valued at €2.4 billion, as it looks to simplify management of its businesses in the continent.
In a statement, Vodafone said around 80 per cent of the deal would be settled through issuing 242 million new ordinary shares in Vodacom, while the remaining 20 per cent would be settled in cash. The issuing of new shares means Vodafone’s ownership in Vodacom will increase from 60.5 per cent to 65.1 per cent.
The transaction in total values Vodafone’s 55 per cent shareholding in Vodafone Egypt at €2.7 billion, with the deal price reducing to €2.4 billion to account for debt. The remaining 45 per cent of Vodafone Egypt is held by Telecom Egypt, the country’s incumbent.
Strategy
Explaining the rationale behind the move strategically, the companies said it helps to simplify management of holdings in Africa, it gives Vodacom exposure to another leading business in an attractive market and it expects Vodafone Egypt to benefit from closer cooperation with its new parent, “enabling it to accelerate growth in financial services and IoT”.
Vodafone Egypt is the country’s largest mobile player, offering telecoms services to 43 million consumer and enterprise customers, and has 43 per cent revenue market share, said Vodacom.
Shameel Joosub, CEO of Vodacom Group, said the deal would cement its position as Africa’s leading “techno”, while increasing total population coverage on the continent to more than “half a billion people and more than 40 per cent of Africa’s GDP"'
https://www.mobileworldlive.com/featured-content/home-banner/vodacom-takes-control-of-vodafone-egypt-in-e2-4b-deal/#:~:text=Vodafone%20Group%20announced%20a%20move%20to%20transfer%20its,simplify%20management%20of%20its%20businesses%20in%20the%20continent.