Verizon To Acquire Vodafone's 45% Stake In Verizon Wireless For $130 Bln

(RTTNews) - Vodafone Group Plc (VOD, VOD.L) Monday announced agreement with Verizon Communications Inc. (VZ) to sell its US group, whose principal asset is its 45 percent interest in Verizon Wireless, for a total consideration of $130 billion.

Verizon Wireless is a partnership between the two companies wherein Verizon and Vodafone held 55 percent and 45 percent, respectively.

"This transaction will enable us to provide substantial returns to individual shareholders and to the investment funds relied upon by savers and pensioners, " said Vodafone Group Chairman Gerard Kleisterlee.

The transaction includes a cash payment of $58.9 billion and $60.2 billion in Verizon shares. Vodafone will also consider $5.0 billion in the form of Verizon loan notes and $3.5 billion in Verizon's 23 percent minority interest in Vodafone Italy.

At close of transaction, Vodafone shareholders are expected to receive $23.9 billion in cash and all of the Verizon shares totaling $84.0 billion.

The transactions are expected to be completed in the first quarter, subject to the satisfaction of certain conditions precedent.