Verizon Completes $130 Bln Verizon Wireless Deal With Vodafone

(RTTNews) - Verizon Communications Inc. (VZ) announced Friday that it has completed its acquisition of Vodafone Group Plc's (VOD, VOD.L) 45 percent indirect interest in Verizon Wireless in a transaction valued at about $130 billion. The transaction is immediately accretive to Verizon's earnings per share by approximately 10 percent, excluding any non-operational adjustments.

As previously announced, pursuant to the stock purchase agreement, Verizon issued about 1.27 billion common shares to shareholders of Vodafone as the stock portion of the consideration for Vodafone's 45 percent indirect interest in Verizon Wireless.

Verizon said it used proceeds from capital markets transactions occurring in September 2013 and February 2014, as well as $6.6 billion borrowed on February 21, 2014 under its Term Loan Credit Agreement, dated October 1, 2013, for the payment of the cash portion of the consideration to Vodafone and related fees and expenses.

Verizon Wireless reported $81.0 billion in operating revenues in 2013. Operating income margin was 32.1 percent in 2013.

Verizon Wireless was the U.S. wireless joint venture between Verizon Communications and Vodafone, with Verizon owned a 55 percent stake and Vodafone owned a 45 percent interest. The joint venture began operations as Verizon Wireless on April 4, 2000.

Verizon struck a deal with Vodafone in September 2013 to acquire the Vodafone stake in a $130 billion deal. This included $58.9 billion in cash, $60.2 billion in Verizon stock, and the remaining $10.9 billion from smaller deals. The deal would see Verizon Communications gain 100 percent control of Verizon Wireless.

In late January this year, shareholders of both Vodafone as well as Verizon approved the buyout by Verizon of Vodafone's 45 percent stake in the Verizon Wireless joint venture. The deal was backed by 99.76 percent of Vodafone shareholders.

At a special meeting in January, shareholders of Verizon Communications also approved the company's issuance of up to 1.28 billion shares of common stock to Vodafone shareholders to complete the deal.