Vodafone share price: Telco completes Dutch JV with Liberty

on Jan 3, 2017
Updated: Oct 21, 2019

Vodafone (LON:VOD) has completed its joint venture in the Netherlands with peer Liberty Global, the London-listed telco has said. The move came after the UK company wrapped up the sale of its consumer fixed business in the country at the end of last year.

Vodafone’s share price ended 2016 in the red, closing 0.27 percent lower at 199.85p, and underperforming the broader London market, with the benchmark FTSE 100 index closing marginally higher. The telco’s shares lost just under ten percent of their value last year.
Vodafone announced in a statement to the London Stock Exchange this morning that it had completed its Dutch joint venture with Liberty Global, dubbed Vodafone Ziggo, creating a communications operator with combined revenue of over €4 billion. The two telecoms companies announced their plans to merge their Dutch units in February last year, noting that they would create a 50-50 joint venture offering video, broadband, mobile and B2B services, in an effort to compete better with local rival KPN.

Commenting on the transaction, Vodafone’s chief executive Vittorio Colao said in the statement that “the merged operation will be a stronger competitor in the Netherlands – one of our core European markets”.
The completion of the venture came after the UK group divested its consumer fixed business in the Netherlands, to allay the European Commission’s competition concerns. The telco noted today that following the divestment, the estimated net present value of total synergies for the transaction remained around €3.5 billion.
The 22 analysts offering 12-month price targets for Vodafone for the Financial Times have a median target of 250.00p, with a high estimate of 300.00p and a low estimate of 155.00p. As of December 29, 2016, the consensus forecast amongst 32 polled investment analysts covering the stock has it that the company will outperform the market.
As of 07:48 GMT, Tuesday, 03 January, Vodafone Group plc share price is 199.85p.

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