Vodafone has agreed to sell its entire 44 per cent stake in the French mobile network, SFR to its 56 per cent shareholder Vivendi for a cash consideration of €7.75 billion (US$11 billion).

The price being paid is a significant premium on the US$9.6 billion that Vivendi was recently reported to be unwilling to exceed.

Vodafone will also receive a final dividend from SFR of €200 million on completion of the transaction. In addition, Vodafone and SFR will enter into a Partner Market agreement that will maintain their commercial co-operation.

A total of £4 billion (US$6.4 billion) of the net proceeds will be returned to shareholders by way of a share buy-back with the remainder of the proceeds used to reduce the group’s net debt. The share buy-back will be carried out after the completion of the existing programme, which is expected to be completed in June 2011.

At end-September 2010 the SFR investment had a carrying value of €4.9 billion in Vodafone’s accounts.

Vodafone’s shareholding in SFR contributed £573 million to Vodafone’s adjusted operating profit in the financial year to end-March 2010, and £284 million in the six months to end-September 2010.

Commenting on the transaction, Vittorio Colao, CEO of Vodafone said: "Our board remains committed to realising maximum value from our non-controlled assets. The sale of our stake in SFR, at an attractive multiple, represents a significant further step in the execution of this strategy. In addition, we have secured a valuable partnership agreement in France which will allow us to continue to deliver compelling cross-border services to both consumer and enterprise customers across the major markets of western Europe.”

Vodacom has officially launched its new brand and identity, which incorporates the red colour and corporate image of parent company Vodafone.

"The change in colour is the tip of the iceberg, just the outside indication of a much bigger change at Vodacom,” commented Vodacom Group CEO Pieter Uys. “The role we play in our customers’ lives has changed – connectivity has gone from a convenience to a basic need, and we need to turn our business on its head to make sure that we cater for this.”

The advertising slogan adopted by the South African cellco is "Power to You", which Uys describes as being a new approach and new direction for Vodacom.

In May 2009, Vodacom listed on the Johannesburg Stock Exchange after Vodafone increased its stake by 15 per cent to 65 per cent.

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