Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Cant see where that €122Bn comes from?
FY22 Total Assets €154Bn = Total Equity and Liabilities €154Bn
Market Cap c€25Bn
8.33% div to compensate for risk vs building society etc
Bloomberg reports:
Organic service revenue grew 1.8%, meeting analyst estimates
Della Valle says plan is to become a ‘simpler business’
https://www.bloomberg.com/news/articles/2023-02-01/vodafone-revenue-meets-estimates-ceo-says-we-can-do-better
Should be enough to push this along. Free cashflow sufficient to pay FY div. Its a slog but holding..
93.1p for me please
Happy new year all
https://www.youtube.com/watch?v=xpAvcGcEc0k&t=22s
good to see a positive article and hopefully more on the way
'Welcome to 2023.'
..and i mean that most sincerely folks
I topped up this morning and just forgetting about it. Come back in a year or the new year..
Happy hols all
'I haven't checked your figures, but isn't it misleading to say "high rates are getting locked in long term.", since Vodafone could go for early redemption at any time of their choosing?'
If the average debt maturity is more than 11 years and inflation is 10% then the bond holders could owe VOD money, not the other way round. I guess thats the legacy of negative interest rates.
VOD is helping the bondholders out if they retire debt early. I suppose the connundrum is more than 50% of the debt is less than 2% coupon out beyond 2030 and 2040 and its the higher coupon 2028 debt thats getting retired early this week
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..
'paying down €2Bn debt due 2028'
4.375% for another 6 years suggests c€0.5Bn interest saved (and debt has been reduced).
'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.
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.
*SP
Thanks good find. Must admit I thought you were danielh, aka, Glen Miller.
Certainly food for thought. I suppose the question is, does the new ceo adopt the times strategy and concentrate the vod footprint by disposing 10% of the operations and getting rid of the 'small opcos' to pay down debt. As the debt maturity is average 11 years, I assume that means the near term debt to 2030 is tendered for cash leaving the remaing debt less than 2% coupon 2030/2040+. The continuing business presumably grows with economic recovery, german roll out but what about Vodacom and EIA.
Assuming everyone likes the new CEO, the SO should soar?
Android 'Isnt it more accurate to use c€30Bn debt'
Good point. VOD just tendered $2.3Bn cash offer for its $3Bn 4.375% NOTES DUE MAY 2028. That should push the average maturity of debt out beyond 11 years and the service cost after 2030 is less than 2%.
"The rationale of E&'s investment in Vodafone is unchanged from the original investment, as announced on 14 May 2022, which is to gain significant exposure to a world leader in connectivity and digital service at an attractive valuation," it said'
Not expert but think they need just under 30% to be forced to bid? But I dont think they want the lot. The africa model is a strategic fit and with Reid out of the way Vodacom is an exciting possibility.
Thats Vantage, VOD 3UK, Hungary, Vodacom, Italy/Iliad. Crikey, pregnant with possibilities.
Holding tight for the FY. GLA
Great stuff
think this SP its for the pension funds to load up and not rely on the BoE for a bail out.
' adding that dividend policy should be treated as under review'
sounds like something a jefferies analyst has said.
The BoD had the opportunity to say that but have committed to the next two dividends which is what MDV will be making sure lands as published
'So they should reduce by 15B EUR.'
Could do that by selling all Vantage and Italy to Iliad.
MDV will also increase prices from March as reported.
No near term debt issues and plenty of cash to service debt as normal.
Watch the index crash and VOD soar imho.
Quick, close those shorts before its too late
'I can genuinely see 50p here by march next year..'
you can get medication for that. I prefer a good red wine and hold tight for the recovery