Vodafone Group is set to cash in to the tune of $US130 billion after agreeing to sell out of its US-based joint venture in the third-largest corporate deal in history.
According to Reuters, the deal will see the UK-based telco sell its 45% stake in US mobile phone carrier Verizon Wireless to joint venture partner Verizon Communications in exchange for a massive $US130 billion windfall.
The deal, which is set to reshape the telecommunications industry globally, is the third largest corporate deal in history, trailing only Vodafone’s $US203 billion takeover of Germany’s Mannesmann in 1999 and AOL’s $US181 billion acquisition of Time Warner in 2000.
The massive deal will see Vodafone gain $US58.9 billion in cash, $US60.2 billion in Verizon stock and a further $US11 billion in related transactions.
Vodafone is set to return 71% of the proceeds, worth $US84 billion, to shareholders, while leaving the telco giant billions for potential mergers and acquisitions, as well as improvements to its mobile phone networks around the world.
Vodafone Group, the world’s second largest telco by subscribers after China Mobile, owns 50% of VHA joint venture in Australia, which trades under the Vodafone brand locally.