REG - Vodafone Group Plc - Vodafone Confirms Discussions in the UK

VodafoneAnnouncement

03/10/2022 11:30

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RNS Number : 5635B  Vodafone Group Plc  03 October 2022

03 October 2022

 

Vodafone confirms discussions in relation to Vodafone UK and Three UK

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Vodafone Group Plc ("Vodafone") notes the recent press speculation in relation
to Vodafone UK and Three UK.

Vodafone confirms that it is in discussions with CK Hutchison Holdings Limited
("CK Hutchison") in relation to a possible combination of Vodafone UK and
Three UK.

The envisaged transaction would involve both companies combining their UK
businesses, with Vodafone owning 51% and our partner CK Hutchison owning 49%
of the combined business.

The relative ownership would be achieved through a differential leverage
contribution at closing, and no cash consideration will be paid.

The UK Government rightly sees 5G as transformational for the economy and
society and critical to the UK becoming more competitive in an increasingly
digital world.

The conditions to ensure thriving competition in the market need to be
nurtured, otherwise the UK is at risk of losing the opportunity to be a 5G
leader. As Ofcom has identified, some operators in the UK - Vodafone UK and
Three UK - lack the necessary scale to earn their cost of capital (1).

By combining our businesses, Vodafone UK and Three UK will gain the necessary
scale to be able to accelerate the rollout of full 5G in the UK and expand
broadband connectivity to rural communities and small businesses.

The merged business would challenge the two already consolidated players for
all UK customers and bring benefits through competitively priced access to a
third reliable, high quality, and secure 5G network throughout the UK.

There can be no certainty that any transaction between the two companies will
ultimately be agreed.

If required, a further announcement will be made when appropriate.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No 596/2014 as it forms part of domestic UK
law as defined in the Market Abuse (Amendment) (EU Exit) Regulations (SI
2019/310).

(1) Ofcom's Discussion Paper (February 2022) described Vodafone UK and Three
UK as sub-scale operators

 

- ends -

For more information, please contact:

Investor
Relations
Media Relations

Investors.vodafone.com
Vodafone.com/media/contact

ir@vodafone.co.uk
GroupMedia@vodafone.com

Registered Office: Vodafone House, The Connection, Newbury, Berkshire RG14
2FN, England. Registered in England No. 1833679

 

Person responsible

The person responsible for arranging the release of this announcement on
behalf of Vodafone is Rosemary Martin, Group General Counsel and Company
Secretary (Tel: +44 (0)1635 33251).

 

 

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