Vodafone Group Plc Contingent liability payment to Vodafone Idea (5229K)
22 Aprile 2020 - 2:00PM
UK Regulatory
TIDMVOD
RNS Number : 5229K
Vodafone Group Plc
22 April 2020
22 April 2020
VODAFONE GROUP MAKES ACCELERATED PAYMENT TO VODAFONE IDEA
UNDER THE CONTINGENT LIABILITY MECHANISM
Vodafone Group announces that it has accelerated a payment of
US$200 million to Vodafone Idea, which was due in September 2020
under the terms of the contingent liability mechanism ("CLM") with
Vodafone Idea.
Vodafone Group has accelerated this payment to provide Vodafone
Idea with liquidity to manage its operations, and to support the
approximately 300 million Indian citizens who are Vodafone Idea
customers as well as the thousands of Vodafone Idea employees
during this phase of emergency health measures, taken as a result
of the COVID-19 pandemic.
Following the decision by India's Supreme Court on the
definition of Adjusted Gross Revenue ("AGR") in October 2019,
India's telecoms operators became liable for licence fees,
penalties and interest dating back over 14 years. Vodafone Idea has
made payments to the Government of India in relation to its AGR
liabilities. Under the terms of the CLM, Vodafone Group is obliged
to make payments to Vodafone Idea where amounts paid pursuant to
the contingent liabilities of Vodafone India exceed those of Idea
Cellular. The CLM took effect at completion of the merger of
Vodafone India and Idea Cellular in August 2018.
- ends -
Notes to editors:
As part of the agreement to combine its subsidiary, Vodafone
India, with Idea Cellular Limited ('Idea') in India, which
completed on 31 August 2018, Vodafone Group, Aditya Birla Group and
Idea agreed that Vodafone Group and Vodafone Idea would reimburse
each other on set dates for certain identified pre-merger
liabilities and assets that could crystallise in future. The
mechanism, which was disclosed in Vodafone's results announcements
and report and accounts, regulates terms for payments in relation
to these liabilities and assets as they are paid or received by
Vodafone Idea. Vodafone Group's potential exposure under this
mechanism is limited to Rs. 84bn (EUR1.0bn).
Fo r further information:
Vodafone Group
Media Relations Investor Relations
www.vodafone.com/media/contact ir@vodafone.co.uk
About Vodafone Group
Vodafone Group is one of the world's leading telecoms and
technology service providers. We have extensive experience in
connectivity, convergence and the Internet of Things, as well as
championing mobile financial services and digital transformation in
emerging markets.
Vodafone Group has mobile operations in 23 countries, partners
with mobile networks in 42 more, and fixed broadband operations in
18 markets. As of 31 December 2019, Vodafone Group had
approximately 625 million mobile customers, 27 million fixed
broadband customers and 22 million TV customers, including all of
the customers in Vodafone's joint ventures and associates. For more
information, please visit: www.vodafone.com .
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END
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