Sale of France Telecom Shares
Vodafone Group PLC
28 February 2001
Sale of France Telecom shares
Vodafone Group Plc announces today that agreement has been
reached with France Telecom on terms for the sale to France
Telecom of 113.85 million France Telecom shares (the 'FT
Shares') held by its subsidiary Vodafone Jersey Investments
Limited ('Vodafone').
The transaction represents a comprehensive settlement of the
put and call option arrangements entered into by Vodafone and
France Telecom at the time of the Orange transaction, whereby
France Telecom has agreed to repurchase Vodafone's entire
France Telecom shareholding.
The transaction values the FT Shares at approximately EURO
11.63 billion (£7.34 billion) which will be paid by France
Telecom to Vodafone in tranches as follows:
* a first cash payment of EURO 6.06 billion (£3.83 billion) on
5 March 2001
* a second cash payment of EURO 0.59 billion (£0.37 billion)
on 26 March 2001
* a third cash payment of EURO 4.97 billion (£3.14 billion)
on 25 March 2002
The third cash payment of EURO 4.97 billion on 25 March 2002
is subject to an upward adjustment in the event that the
France Telecom share price is above the euro equivalent of £60
at that time, and is capped at the euro equivalent of £79 per
share.
In addition, the France Telecom loan note of EURO 2.15 billion
(£1.36 billion) owned by Vodafone Group Plc will be redeemed,
including interest, for EURO 2.22 billion (£1.40 billion) on
13 March 2001.
The transaction will deliver total proceeds to the Vodafone
group of at least EURO 13.84 billion (£8.76 billion), of which
EURO 8.87 billion (£5.62 billion) will be received by 31 March
2001.
Vodafone's holding in France Telecom represents 9.87% of the
France Telecom outstanding share capital.
The Vodafone group will use the cash proceeds of the disposal
of the FT Shares and redemption of the loan note to reduce
existing group debt.
Vodafone Group Plc was advised by UBS Warburg.
Notes to editors:
The exchange rate used to convert euro ('EURO') to pound
sterling ('£') is 0.6312
For further information:
Vodafone Group Plc
Tim Brown, Group Corporate Affairs Director
Melissa Stimpson, Head of Group Investor Relations
Jon Earl, Investor Relations Manager
Tel: +44 (0) 1635 33251
Tavistock Communications
Lulu Bridges
Tel: +44 (0) 20 7600 2288
UBS Warburg
Warren Finegold
Andre Sokol
Tel: +44 (0) 20 7567 8000
This announcement has been issued by and is the sole
responsibility of Vodafone Group Plc. UBS Warburg Ltd., a
subsidiary of UBS AG, which is regulated in the United Kingdom
by the Securities and Futures Authority Limited, is acting for
Vodafone Group Plc and for no one else in connection with the
proposed transaction and will not be responsible to anyone
other than Vodafone Group Plc for providing the protections
afforded to customers of UBS Warburg Ltd., or for providing
advice in relation to the transaction.
Latest directors dealings
- 3 hours ago ASOS
- 3 hours ago MJ Gleeson
- 3 hours ago Rolls-Royce Holdings
- 4 hours ago Crest Nicholson Holdings
- 4 hours ago Naked Wines