How to make money in mobile

21 January 2003

Thanks to an awkward little bit of history, Vodafone is obliged to pay over the odds for control of its Spanish arm. Seller Acciona will have made 40% on a threeyear old mobile investment. Minorities in Vodafone’s other operations will be green.

This content is for Subscribers only

Context News

Vodafone is to pay E2.018bn to the remaining minority shareholder in its Spanish arm, Acciona, following the exercise of a put option. The 6.2% so acquired will take Vodafone's ownership of Airtel Movil to 100%. The option, which was created as part of a shareholders' agreement in January 2000, was due to expire on 21 January this year.

Vodafone's original investment in Airtel was 21.7%. In December 2000, it increased its holding to 73.8%, paying £7.9bn in stock for the extra shares. In May 2001, it paid £1.1bn for a further 17.8%. In April 2002, Torreal exercised a put option on its 2.2% stake for £0.4bn.

In the year to 31 March 2001, Airtel Movil's turnover was £1.8bn, and it had 7.9m customers.

Email a friend

Please complete the form below.

Required fields *