Vodafone sells stake in operator SFR to Vivendi

Vivendi will own 100 percent of the equity in SFR after the transaction

Vivendi will acquire Vodafone’s 44 percent stake in the French telecommunications company, Société Française du Radiotéléphone (SFR), for €7.95 billion euros (US$11.3 billion), giving it full ownership of SFR.

The agreement, announced on Friday, comes after months of talks and reflects Vodafone’s strategy to divest companies that it does not have management control over.

Vodafone said on Monday that its board remains committed to realizing maximum value from non-controlled assets. The company said it will return £4 billion (US$6 billion) of the net proceeds to its shareholders through a share buy back, with the rest used to reduce the group’s net debt.

Vodafone's SFR holdings contributed £573 million to Vodafone's adjusted operating profit for the financial year ending March 31, 2010, and £284 million in the six months up to Sept. 30, 2010, the company said.

Vivendi, a large media company, has investments in telecommunications companies in France, Morocco and Brazil.

SRF and Vodafone will also have a partnership in France for the next three years. Vodafone said the partnership will allow it to “continue to deliver compelling cross-border services to both consumer and enterprise customers across the major markets of western Europe."

Last year, Vodafone sold its 3.2 percent stake in China Mobile, and also divested its stake in Softbank in Japan.

But the company continues to invest in some markets such as India where it said last week that it will pay $5 billion to buy out the 33 percent stake held by its Indian joint venture partner, Vodafone Essar. The company had taken a £2.3 billion charge last year for its earlier investment in the joint venture, citing fierce price competition in the Indian market.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuestelecommunicationVivendiCarriersVodafone GroupMergers / acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Bitdefender 2019

Bitdefender solutions stop attacks before they even begin! Get cybersecurity that 500 MILLION users already have and trust.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?