Vodafone chief executive Vittorio Colao today said that the British mobile phone giant's USD 130-billion Verizon Wireless deal would help strengthen its strategy, boost infrastructure investment and slash debt.
"I really believe that this is a good transaction. I think the value is good also for Verizon," Colao said in a conference call to analysts, one day after unveiling the vast deal to sell Vodafone's 45-per cent stake in its US joint venture to partner Verizon.
"It's one of those cases which turns into a win-win and I do believe that it leaves Vodafone the same as before with a stronger balance sheet, with an appealing set of countries and the possibility to accelerate, to spring ahead and become again a leader."
Vodafone yesterday said that it would return USD 84 billion of the funds it receives back to shareholders and plough over USD 9 billion into organic investments over the next three years to improve its networks and services.
Colao revealed today that Vodafone would also slash its debt by about USD 20 billion as a result of the blockbuster deal.
"This is a fantastic transaction which allows us to strengthen our existing strategy but we are not changing the strategy," he added.
The chief executive today said that Vodafone would boost spending on "mostly infrastructure investment, shops mainly."
He added, "Despite the tough macro environment in Europe and the ongoing incertainties, we believe that consumer demand for data (...) will continue to grow very quickly.
"Vodafone is positioning itself now to maximise the opportunity it represents for telecom operators."
Back in June, Vodafone launched a 7.7-billion-euro cash offer for Kabel Deutschland, Germany's biggest cable operator, in a bid to grow in Europe.
