Vodafone Group (LSE:VOD) will pay £4.3 billion in cash to cancel CK Hutchison Group Telecom Holding Limited's 49% stake and become sole owner of VodafoneThree, the UK's largest mobile operator and a fast-growing broadband provider.
Integration since the May 2025 merger has delivered network-quality improvements ahead of schedule and stronger customer retention, and Vodafone expects to realise £700 million of annual cost and capex synergies by FY30, Vodafone said.
The Transaction is structured as a £4.3 billion cash-funded cancellation of CKHGT's shares, Vodafone plans to fund it from existing cash resources, and the deal is expected to increase Vodafone Group's pro forma net debt to Adjusted EBITDAaL by 0.4x.
The announcement notes that at completion of the merger CKHGT contributed £1.7 billion of debt and Vodafone £4.3 billion of debt, the parties have since contributed £0.8 billion of equity, and VodafoneThree's net debt was £5.08 billion as at 31 March.
Completion is subject to approvals under the UK National Security and Investment Act and the Transaction is expected to complete in the second half of 2026.
Max Taylor will continue as Chief Executive of VodafoneThree, the group's multi-brand strategy will remain in place and VodafoneThree's financials are already fully consolidated in Vodafone Group's accounts.
"A year on from the merger, the team has made remarkable progress as we maximise VodafoneThree's potential and capture significant synergies," said Margherita Della Valle.
