Verizon Completes Acquisition of Vodafone's 45 Percent Indirect Interest in Verizon Wireless
PR Newswire
NEW YORK, Feb. 21, 2014
NEW YORK, Feb. 21, 2014 /PRNewswire/ -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced that it has completed its acquisition of Vodafone Group Plc's (London, Nasdaq: VOD) 45 percent indirect interest in Verizon Wireless in a transaction valued at approximately $130 billion. As previously announced, the transaction is immediately accretive to Verizon's earnings per share by approximately 10 percent, excluding any non-operational adjustments.
"This is a great day for Verizon," said Lowell McAdam, Verizon chairman and CEO. "The new Verizon now has full ownership of the U.S. wireless industry leader in network performance, profitability and cash flow. Acquiring Vodafone's stake in Verizon Wireless provides us with opportunities for greater financial flexibility, enhanced operational efficiency and innovations that will benefit customers. We are confident it will fuel further growth in our business."
McAdam continued: "Over the past 14 years, Verizon Wireless has become the largest and most profitable wireless company in the U.S., and this could not have been achieved without the successful partnership between Verizon and Vodafone. We look forward to continuing to provide superior solutions and services to meet our customers' evolving demands and delivering significant value to our shareholders."
As previously announced, pursuant to the stock purchase agreement, Verizon issued 1,274,764,121 common shares to shareholders of Vodafone as the stock portion of the consideration for Vodafone's 45 percent indirect interest in Verizon Wireless. Verizon used proceeds from capital markets transactions occurring in September 2013 and February 2014, as well as $6.6 billion borrowed on Feb. 21, 2014 under its Term Loan Credit Agreement, dated Oct. 1, 2013, for the payment of the cash portion of the consideration to Vodafone and related fees and expenses.
Guggenheim Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Paul J. Taubman served as lead financial advisers to Verizon. Barclays and BofA Merrill Lynch served as financial advisers to Verizon. Wachtell, Lipton, Rosen & Katz and Macfarlanes LLP served as transaction counsel to Verizon, and Debevoise & Plimpton LLP advised Verizon on its debt financings.
Founded in 2000 as a joint venture of Verizon and Vodafone, Verizon Wireless reported $81.0 billion in operating revenues in 2013. Operating income margin was 32.1 percent in 2013.
http://www.ariva.de/news/...rect-Interest-in-Verizon-Wireless-4940227 
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