Vodafone and CK Hutchison are expected to disclose the merging of their British operations, resulting in the UK’s largest telecom operator.
According to Reuters, the announcement could occur as soon as Friday. The combined entity is projected to have Vodafone owning a 51% stake and Hutchison the remaining share. The report suggests that the entity, inclusive of debt, could be valued at £15 billion.
Adjusting ownership of debt is the method to achieve respective stakes, rather than exchanging cash. Vodafone Group’s decision to write off its investment in Vodafone Idea suggests its lack of interest in salvaging its India joint venture with Aditya Birla’s Kumar Mangalam Birla. According to the notes of its FY23 preliminary results released on May 16, Vodafone Group Plc has a carrying value of nil for its investment in VIL and is not recording any further share of losses in respect of VIL.
Related: German Watchdog Probes Vodafone, Vantage Towers Over Radio Towers
The proposed merger between Vodafone and Hutchison would result in the largest telecom company in Britain, serving 27 million customers. The regulatory approval process is expected to be rigorous, but the companies believe that the merger would improve services for users by expanding 5G coverage and broadband connectivity.
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