VOD · Vodafone Group Public Limited Company

Vodafone Group Plc has agreed to take full ownership of VodafoneThree, the UK's largest mobile operator, by buying out CK Hutchison Group Telecom Holdings Limited's (CKHGT) 49% stake for £4.3 billion in cash via share cancellation. This follows the merger of Vodafone UK and Three UK, which completed on 31 May 2025, establishing VodafoneThree as 51% owned by Vodafone. The transaction values VodafoneThree at an enterprise value of £13.85 billion, with net debt at £5.08 billion as of 31 March 2026. Funding will come from Vodafone's existing cash resources, increasing pro forma net debt to Adjusted EBITDAaL by 0.4x. Post-merger integration has progressed ahead of schedule, improving network quality, customer retention, and cross-selling, particularly for Three brand. Management expresses confidence in delivering £700 million in annual cost and capex synergies by FY30, accelerating 5G rollout and digital infrastructure transformation. Margherita Della Valle, CEO, highlighted the strong integration momentum and value creation potential. Max Taylor remains CEO of VodafoneThree with no change to multi-brand strategy. The deal is a Related Party Transaction, deemed fair by the Board with Morgan Stanley's advice. Consensus EBITDAaL for the 12 months to 31 March 2027 is £1.81 billion. An investor briefing is planned later in the year.