Vodafone withdrew from the USA by selling its Verizon shares, but the shareholders voted for paying out the money and a whopping £18bn will be received by share owners in the UK.
The decision to sell Verizon and spread the windfall came after a voting that took place in the Hilton Metropole Hotel in London. Shareholders, one third of who are based in Britain, will receive a huge dividend coming from the sale. The £18bn-large payout is deemed to be the biggest return of value in corporate history. The beneficiaries will include almost 500,000 retail shareholders from the UK plus around 250 senior managers and directors. Apart from the money, shareholders will also get shares of the new Verizon network, which they will mostly likely cash in to buy more Vodafone’s share or invest in something else.
This news is great for Britain, because most people will spend this extra cash and thus boost the economy. However, stockbrokers anticipate a decrease in Vodafone’s share price that will reflect the amount of money paid out, but nevertheless in the end the shareholders will have both a percentage of the payout and their money-making Vodafone shares.