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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.
No mention of when you will buy back the wife, though ...
Following completion, Vodafone's shareholding in Vodacom has increased from 60.5% to 65.1%.
- ends -
1. The selling entities were Vodafone Europe B.V. and Vodafone International Holdings B.V., which are 100% owned indirect subsidiaries of Vodafone Group Plc.
OK they were 100%. But Do we get any benefit from this deal..??????
its not 100% its 65%
With all this action around the world and with vodafone in africa, I have to say I am a little confused as to the true value of vodafone and it's share price.
It looks to me as though the vodafone SP only values the vodafone business and nothing of the vodacom even though vodacome is owned 100% by vodafone. Do we get any benefit at all from this deal.?
Selling vodacom would be one of the most strategically stupid moves ever. For that reason, it won't happen, unless sold at a massive premium.
wonder when they will announce new ceo. They should sell off the 242m shares of vodacom they just got to reduce debt.
Telecoms in general are out of favour with the markets....not just Vod.....good time to top up if you had funds available.
No doubt this malaise will pass and price will increase to ~£1.10-1.20 in time
This will sink if thd board cannot restore market confidence. They are failing badly and should possibly look at a career change and bring in a fresh perspective. It hasn't worked and really aching 45b debt and destroying SH value is not a great achievement.
Thanks to Roofer for collecting the shouts, i've taken the liberty of working out the average for some additional fun. Lets see how accuratebwe are as a group
Average price is 89.98
I totally agree as a completely new stock to myself it is at giveaway prices
Have taken 3 tranches over 3 days and delighted with the position
Bottom drawer for 2 years and any dividends should they be paid simply reinvested
16th Dec closing Sp
Raffles 103.5p
16th Dec closing Sp
Doyen Dan ??
SlartitB 92.75p
Gejgaboy 90p
Exil 85p
Velo 88.5p
Y11-shx 82p
FredRubble 88.69p
Atb...
dont see any RNS on Vodacom
https://www.telcotitans.com/vodafonewatch/vodacom-completes-egypt-deal-as-etisalat-studies-offer-for-sa-group/5926.article
"Vodacom Group appears to have finally completed its buyout of Vodafone Egypt more than a year after the deal was first announced, amid reports that UAE’s e& — formerly Etisalat — is in turn considering buying shares in the African group to boost its international footprint."
I think you mean support
Resistance is futile
strong resistance
I had to sell my castle and yacht as I bought this too early, hopefully I can buy them back in a couple of weeks
92.75p please, if not too late.
Sorry, I was moving my yacht and then got chatting to one of the neighbors next to our 16th century converted castle overlooking the mooring.