As per the latest update by Vodafone, its Chief Executive has announced that the company’s US$130-billion Verizon Wireless deal would help strengthen its strategy, boost infrastructure investment and slash debt. According to this deal, Vodafone will sell its 45-per cent stake in its US joint venture to partner Verizon.
Vittorio Colao, Chief Executive, Vodafone, said, I really believe that this is a good transaction. I think the value is good also for Verizon. It is one of those cases which turns into a win-win and I do believe that it leaves Vodafone the same as before with a stronger balance sheet, with an appealing set of countries and the possibility to accelerate, to spring ahead and become again a leader.
He added,This is a fantastic transaction which allows us to strengthen our existing strategy but we are not changing the strategy. Despite the tough macro environment in Europe and the ongoing uncertainties, we believe that consumers demand for data will continue to grow very quickly.
The Vodafone-Verizon deal is expected to maximize Vodafone’s opportunity it represents for telecom operators.
Colao also revealed that Vodafone would also slash its debt by about US$20 billion as a result of the blockbuster deal.
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