Vodafone Group PLC (LSE:VOD) shares declined 1.5% to 129.3 pence on Wednesday following reports that the company could lose up to €1.1 billion ($1.27 billion) in potential earnings linked to a change in ownership at its German broadband joint venture, OXG.
According to the Financial Times, Société Générale agreed earlier this month to acquire Patrick Drahi’s 50% stake in OXG.
The report indicated that the French bank will not assume Drahi’s deferred payment obligations as part of the transaction.
The arrangement could affect up to €1.1 billion in potential earnings for Vodafone, although the final financial impact has not been established in the supplied information.
The reported transaction would transfer Drahi’s interest in the German broadband venture to Société Générale, changing the ownership structure of OXG.
Vodafone’s shares were trading at 129.3 pence following the reported decline.
Leave a Reply