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 Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesMergers / acquisitionstelecommunicationCarriersVivendiVodafone Group

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?