Vodafone employs about 104,000 people globally and 9,400 people in the UK…reports Asian Lite News
Telecommunication player Vodafone is reportedly planning to slash hundreds of jobs, mostly at its London-based headquarters, to cut costs in the global economic slowdown.
The Financial Times reported that this will be the company’s “biggest round of job cuts in five years”.
Vodafone employs about 104,000 people globally and 9,400 people in the UK.
In November last year, the company said it will cut 1 billion euros ($1.08 billion) of costs by 2026.
Its CEO Nick Read stepped down at 2022 end, replaced by chief financial officer Margherita Della Valle for an interim period.
Read stepped down as Group Chief Executive and as a Director of Vodafone on December 31, following which he will be available as an adviser to the Board until March 31, 2023.
He had said that cost savings measures would “be achieved through streamlining and simplification of the group”.
In a statement, Vodafone said it was reviewing its operating model, focusing on streamlining and simplifying the group.
“We will say more about the changes when we announce our third-quarter results on February 1,” said the company.
Earlier this week, the company agreed to sell its business in Hungary to a local IT company called 4iG and the Hungarian state for $1.82 billion.
Read will step down as Group Chief Executive and as a Director of Vodafone on December 31, following which he will be available as an adviser to the Board until March 31, 2023….reports Asian Lite News
Vodafone Group on Monday announced that its CEO Nick Read will step down by the end of the year after four years in the key role.
The company’s Chief Financial Officer (CFO) Margherita Della Valle has been appointed interim Group Chief Executive, the company said in a statement.
Read will step down as Group Chief Executive and as a Director of Vodafone on December 31, following which he will be available as an adviser to the Board untilA March 31, 2023.
“On behalf of the Board, I would like to thank Nick for his commitment and significant contribution to Vodafone as Group Chief Executive and throughout his career spanning more than two decades with the Company,” said Jean-Francois van Boxmeer, Chairman of Vodafone.
Della Valle will accelerate the execution of the company’s strategy to improve operational performance and deliver shareholder value.
In addition to being appointed interim Group Chief Executive, Della Valle will also continue as Group CFO.
The Vodafone Board has initiated a process to find a new Group Chief Executive.
During his four years as CEO, Read led Vodafone through the pandemic, ensuring that our customers remained connected with their families and businesses.
He focused Vodafone in Europe and Africa as a converged connectivity provider and led the industry in Europe in unlocking value from tower infrastructure.
“It has been a privilege to spend over 20 years of my career at Vodafone and I am proud of what we have delivered for customers and society across Europe and Africa. I agreed with the Board that now is the right moment to hand over to a new leader who can build on Vodafone’s strengths and capture the significant opportunities ahead,” said Read.
The Board of Directors of Vodafone Idea, at its meeting held on 10th January 2022, approved the conversion of the full amount of such interest related to spectrum auction instalments and AGR Dues into equity…reports Asian Lite NEWS
The Government of India is set to become the largest shareholder of Vodafone Idea with 35.8 per cent stake as the company’s board has approved conversion of interest on deferred spectrum and Adjusted Gross Revenue (AGR) dues into equity, Vodafone Idea said on Tuesday. The debt-laden Vodafone Idea, a joint venture of UK-based Vodafone Group and Kumar Mangalam Birla-led Aditya Birla Group, has opted for conversion of interest on deferred spectrum and Adjusted Gross Revenue (AGR) liabilities into equity.
The conversion will result in dilution to all the existing shareholders of the Company, including the Promoters. Following conversion, it is expected that the Government will hold around 35.8 per cent of the total outstanding shares of the Company, and that the Promoter shareholders would hold around 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively, Vodafone Idea said in a statement.
The share price of Vodafone Idea slumped following the announcement. Trading in Vodafone Idea started sharply down at Rs 13.40 at the Bombay Stock Exchange (BSE) on Tuesday against the previous day’s close at Rs 14.85. The company’s share price plummeted to a low of Rs 12.05 in the morning trade, which is 18.85 per cent lower from its previous day’s close. The company’s share price recovered later in the day. At 11.10 am at the Bombay Stock Exchange (BSE) Vodafone Idea share was trading at Rs 13.
The Board of Directors of Vodafone Idea, at its meeting held on 10th January 2022, approved the conversion of the full amount of such interest related to spectrum auction instalments and AGR Dues into equity.
“The Net Present Value (NPV) of this interest is expected to be about Rs 16,000 crore as per the Company’s best estimates, subject to confirmation by the DoT. Since the average price of the Company’s shares at the relevant date of 14.08.2021 was below par value, the equity shares will be issued to the Government at par value of Rs 10/- per share, subject to final confirmation by the DoT,” Vodafone Idea said in a regulatory filing to the stock exchanges. Union cabinet on September 15 approved a slew of measures to support the cash-strapped telecom firms. The relief measures include a four-year moratorium on payment of spectrum and AGR dues. The telecom firms have also been given the option to pay the interest amount arising due to the deferment of payments by way of issuing equity to the government.
Following the government’s announcement Bharti Airtel and Vodafone Idea opted for the four-year moratorium. However, Bharti Airtel recently decided to pay the interest amount to the government instead of issuing the equity. After the conversion of the dues into equity, the Government of India will become the largest shareholder of Vodafone Idea. This will require changes in the company’s Articles of Association. “The governance and other rights of the Promoter shareholders are governed by a Shareholders Agreement (SHA) to which the Company is a party and are also incorporated in the Articles of Association of the Company,” Vodafone Idea said.
The rights are subject to a minimum Qualifying Threshold of 21 per cent for each Promoter group, and in light of the conversion of interest into equity, the Promoters have mutually agreed to amend the existing SHA for reducing the minimum Qualifying Threshold from 21 per cent to 13 per cent for the purpose of exercising certain governing rights e.g. appointment of directors and relating to appointment of certain key officials, etc.
Vodafone Idea said its Board has also taken note of the proposed changes to the existing Shareholders Agreement (SHA), and accordingly authorised execution of the same and also recommended changes in the Articles of Association (AoA) to give effect to the changes in the SHA.
The amendment to the AoA shall be subject to the approval of shareholders in general meeting, for which the Board has authorised officials of the Company to decide the date of shareholders meeting in accordance with the terms of the amendment to the existing SHA as approved by the Board, the company said. (ANI)
Share price plunges
Share price of Vodafone Idea plunged nearly 20 per cent on Tuesday after the company’s board approved the conversion of interest on the deferred spectrum and Adjusted Gross Revenue (AGR) liabilities into equity that will make the Government of India the biggest shareholder in the country’s third-largest telecom operator. Trading in Vodafone Idea started sharply down at Rs 13.40 against the previous day’s close at Rs 14.85. The company’s share price plummeted to a low of Rs 12.05 in the morning trade, which is 18.85 per cent lower from its previous day’s close. The company’s share price recovered later in the day. At 11.10 am at the Bombay Stock Exchange (BSE) Vodafone Idea share was trading at Rs 13, which is 12.46 per cent lower from its previous day’s close.
Call to Vodafone Idea call center will now only be answered post lunch https://t.co/R6pj1eKCin
Earlier Vodafone Idea said in a regulatory filing to the stock exchanges that the company’s board at a meeting held on January 10, 2022 approved the proposal of conversion of interest on the deferred spectrum and Adjusted Gross Revenue (AGR) liabilities into equity. The conversion will result in dilution to all the existing shareholders of the Company, including the Promoters. Following conversion, it is expected that the Government will hold around 35.8 per cent of the total outstanding shares of the Company and that the Promoter shareholders would hold around 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively, Vodafone Idea said. (ANI)
