Verizon Communications Inc Reaches Agreement To Acquire Vodafone Group Plc's 45% Interest In Verizon Wireless For $130 Billion


Monday, 2 Sep 2013 12:02pm EDT 

Verizon Communications Inc announced that it has entered into a definitive agreement with Vodafone Group Plc to acquire Vodafone's U.S. group with the principal asset of 45% of Verizon Wireless for $130 billion, consisting primarily of cash and stock. The transaction was unanimously approved by the boards of directors of Verizon and Vodafone, and is subject to customary closing conditions, including regulatory approvals and the approval of both companies' shareholders. The transaction is expected to close in the first quarter of 2014. The transaction would provide Verizon with 100% ownership of Verizon Wireless. Verizon also announced that its Board of Directors has declared a quarterly dividend of $0.53 per outstanding share, an increase of $0.015 per share, or 2.9%, from the previous quarter. On an annual basis, this increases Verizon's dividend $0.06 per share, from $2.06 to $2.12 per share. The transaction consideration of $130 billion consists of a combination of cash, Verizon common stock and other items. Verizon will pay Vodafone $58.9 billion in cash. To fund this portion of the consideration, Verizon has entered into a fully executed $61.0 billion Bridge Credit Agreement with J.P. Morgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc., Bank of America, N.A. and Barclays. Verizon intends to reduce the commitments under the Bridge Credit Agreement with the issuance of permanent financing. 

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