Vodafone Group Plc Vodafone Confirms Discussions in the UK (5635B)
October 03 2022 - 6:19AM
UK Regulatory
TIDMVOD
RNS Number : 5635B
Vodafone Group Plc
03 October 2022
03 October 2022
Vodafone confirms discussions in relation to Vodafone UK and
Three UK
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Vodafone Group Plc ("Vodafone") notes the recent press
speculation in relation to Vodafone UK and Three UK.
Vodafone confirms that it is in discussions with CK Hutchison
Holdings Limited ("CK Hutchison") in relation to a possible
combination of Vodafone UK and Three UK.
The envisaged transaction would involve both companies combining
their UK businesses, with Vodafone owning 51% and our partner CK
Hutchison owning 49% of the combined business.
The relative ownership would be achieved through a differential
leverage contribution at closing, and no cash consideration will be
paid.
The UK Government rightly sees 5G as transformational for the
economy and society and critical to the UK becoming more
competitive in an increasingly digital world.
The conditions to ensure thriving competition in the market need
to be nurtured, otherwise the UK is at risk of losing the
opportunity to be a 5G leader. As Ofcom has identified, some
operators in the UK - Vodafone UK and Three UK - lack the necessary
scale to earn their cost of capital (1).
By combining our businesses, Vodafone UK and Three UK will gain
the necessary scale to be able to accelerate the rollout of full 5G
in the UK and expand broadband connectivity to rural communities
and small businesses.
The merged business would challenge the two already consolidated
players for all UK customers and bring benefits through
competitively priced access to a third reliable, high quality, and
secure 5G network throughout the UK.
There can be no certainty that any transaction between the two
companies will ultimately be agreed.
If required, a further announcement will be made when
appropriate.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014 as it
forms part of domestic UK law as defined in the Market Abuse
(Amendment) (EU Exit) Regulations (SI 2019/310).
(1) Ofcom's Discussion Paper (February 2022) described Vodafone
UK and Three UK as sub-scale operators
- ends -
For more information, please contact:
Investor Relations Media Relations
Investors.vodafone.com Vodafone.com/media/contact
ir@vodafone.co.uk GroupMedia@vodafone.com
Registered Office: Vodafone House, The Connection, Newbury,
Berkshire RG14 2FN, England. Registered in England No. 1833679
Person responsible
The person responsible for arranging the release of this
announcement on behalf of Vodafone is Rosemary Martin, Group
General Counsel and Company Secretary (Tel: +44 (0)1635 33251).
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END
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