Vodafone 2000 Annual Report Download - page 54

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Vodafone AirTouch Plc Annual Report & Accounts for the year ended 31 March 2000
52
30 Subsequent events
On 3 April 2000, a new US joint venture wireless business with a national footprint, Verizon Wireless, was created by the combination of
Vodafone AirTouch’s and Bell Atlantic’s US cellular, PCS and paging assets. Following the anticipated completion of the merger between
Bell Atlantic Corp. and GTE Corp., the Group will have a 45% shareholding in the new venture.
On 12 April 2000, the acquisition of Mannesmann AG received clearance from the European Commission. The acquisition has resulted in
increased shareholdings in certain mobile operations. In addition, Mannesmann’s interests also include fixed line businesses in Germany, Italy,
France and Austria as well as non-telecommunications businesses, primarily Atecs Mannesmann, its engineering and automotive business.
On 17 April 2000, the Company announced that Mannesmann AG had reached an agreement with Siemens AG and Robert Bosch AG on
the disposal of a 50% plus two shares stake in Atecs Mannesmann, with an option arrangement over Mannesmann AG’s remaining stake.
The transaction values Atecs Mannesmann at approximately 9.6 billion, consisting of a payment of 3.1 billion to be paid on completion
of the sale of the stake of 50% plus two shares, but in any event not later than 30 September 2000, 3.7 billion to 3.8 billion to be paid
upon the exercise of certain options between closing and 31 December 2003, and 2.8 billion of pension and non-trading financial liabilities
to be assumed by Siemens AG and Robert Bosch AG. The proceeds from the sale will be used to reduce Group net debt.
On 27 April 2000, the UK business was successful in acquiring the largest 3G licence available to an existing operator, at a cost of
£5.964 billion.
On 17 May 2000, the Company and VivendiNet (a joint venture between Vivendi and Canal+) announced that an agreement had been signed
for the creation of a new joint venture company, VIZZAVI, to establish a multi-access Internet portal for Europe. The Company and VivendiNet
will both have a 50% shareholding in the new company.
At the end of May, the Company and Mannesmann AG reached agreement for the sale of Orange plc to France Telecom for an enterprise
value of £31 billion, subject to approval by France Telecom’s shareholders and the regulatory authorities. Orange plc will retain its current
debt and commitment to fund its UK 3G licence, giving an equity value of approximately £25 billion. The consideration will comprise
£13.8 billion in cash, payable on completion, approximately £1.3 billion through a loan note redeemable by March 2001, and the balance
in France Telecom paper. France Telecom has underwritten the non-cash consideration to a value of £8.4 billion. Until the transaction is
completed, plans continue to effect a demerger of Orange plc in accordance with an undertaking given to the European Commission.
Notes to the Consolidated Financial Statements continued