Vodafone Finalises CLAM Settlement with Vodafone Idea at No Net Cash Cost

Vodafone ( (GB:VOD) ) just unveiled an announcement.

Vodafone has reached a final agreement with Vodafone Idea Limited (Vi) on the amount payable under the Contingent Liability Adjustment Mechanism (CLAM), introduced at the time of the 2017 merger between Vodafone India and Idea Cellular to cover pre‑merger legal, regulatory, tax and other contingent liabilities, and on settlement of Vi’s outstanding service charges to Vodafone. Under the deal, Vodafone will fully settle its CLAM exposure via a €219 million cash payment and by earmarking 3,280 million Vi shares (equivalent to a 3.03% stake) for Vi’s benefit, while Vi will in turn settle €219 million of outstanding service charges, resulting in no net cash outflow for Vodafone; because both the receivable and the Vi shareholding are carried at nil value on Vodafone’s balance sheet, the agreement effectively closes all material open issues between the two groups and simplifies Vodafone’s risk profile in relation to its legacy Indian exposure.

The most recent analyst rating on (GB:VOD) stock is a Hold with a £96.00 price target. To see the full list of analyst forecasts on Vodafone stock, see the GB:VOD Stock Forecast page.

Spark’s Take on GB:VOD Stock

According to Spark, TipRanks’ AI Analyst, GB:VOD is a Neutral.

Vodafone’s overall stock score reflects a mix of financial challenges and positive strategic initiatives. The strong technical momentum and optimistic earnings call sentiment are offset by financial performance concerns and valuation issues. Corporate events further support a positive outlook.

To see Spark’s full report on GB:VOD stock, click here.

More about Vodafone

Vodafone is a leading European and African telecommunications group, serving over 360 million mobile and broadband customers across 15 operating countries, with investments in a further five and partnerships in more than 40 markets. The company operates extensive subsea cable capacity forming part of the internet’s backbone, runs one of the world’s largest IoT platforms with over 220 million connections, and provides mobile financial services to around 94 million customers in seven African countries, underscoring its focus on connectivity, digital services and financial inclusion.

Average Trading Volume: 70,546,122

Technical Sentiment Signal: Buy

Current Market Cap: £22.95B

Learn more about VOD stock on TipRanks’ Stock Analysis page.