Vodafone Group has agreed to sell its 50 percent stake in VodafoneZiggo to Liberty Global in a strategic transaction valued at €1.0 billion in cash, alongside a 10 percent shareholding in a newly formed Benelux entity, Ziggo Group. The deal marks a major step in Vodafone’s portfolio reshaping and capital allocation strategy while enabling Liberty Global to consolidate its regional operations.
Transaction details and valuation
The €1.0 billion cash consideration implies a valuation of VodafoneZiggo at 7.1x enterprise value to CY2025 adjusted EBITDA and 14.2x enterprise value to CY2025 operating free cash flow. Following completion, Ziggo Group will own 100 percent of VodafoneZiggo and Liberty Global’s Belgian subsidiary, Telenet Group Holding.
Liberty Global plans to spin off its 90 percent stake in Ziggo Group to existing shareholders and list the business on Euronext Amsterdam in 2027. Vodafone retains the option to sell its 10 percent stake to a third party if the spin-off does not occur within 18 months after completion.
Strategic rationale and synergies
Liberty Global expects the combined Benelux entity to unlock both financial and operational synergies through greater scale, streamlined operations and stronger market positioning across the Netherlands and Belgium. The new structure is designed to create a more focused regional telecom player capable of accelerating investment and growth.
As part of the agreement, Vodafone will continue to provide brand licensing and other group services to VodafoneZiggo. These services are expected to generate approximately €625 million in charges over the next 10 years, ensuring ongoing collaboration between the companies after the transaction closes.
Margherita Della Valle, Chief Executive of Vodafone Group, said the company secured an attractive valuation while retaining future upside through the Ziggo Group stake.
The transaction remains subject to customary approvals and regulatory clearances and is expected to complete in the second half of 2026.
What this means for Vodafone’s strategy
The sale strengthens Vodafone’s balance sheet with €1 billion in cash while simplifying its European portfolio. By maintaining a minority interest in Ziggo Group, Vodafone keeps exposure to potential value creation from a larger, publicly listed Benelux telecom operator.
Beyond the VodafoneZiggo transaction, Vodafone has been executing a broad multi-year divestment and portfolio-simplification strategy aimed at reducing debt, improving returns and focusing on core markets.
Below is a summary of the company’s other major stake sales and asset disposals.
Sale of Vodafone Spain to Zegona Communications
Vodafone completed the sale of Vodafone Spain in May 2024 for €4.1 billion in cash plus €0.9 billion in redeemable preference shares. This marked one of the largest recent exits and reflected Vodafone’s decision to streamline its European footprint.
Sale of Vodafone Italy to Swisscom AG
In January 2025, Vodafone finalized the sale of its Italian operations for €7.9 billion in cash. Vodafone continues to provide services to the Italian business for up to five years after closing. This deal formed a key pillar of Vodafone’s debt reduction and shareholder return strategy.
Exit from Indus Towers
Vodafone fully exited Indus Towers through multiple transactions:
Vodafone sold an 18 percent stake in June 2024, raising about €1.7 billion. Vodafone also sold its remaining 3 percent stake in January 2025 for about Rs 2,800 crore. The proceeds were used to repay debt and increase Vodafone’s stake in Vodafone Idea.
Sale of Additional Stake in Vantage Towers
Vodafone sold a further 10 percent stake in its tower joint venture Oak Holdings in July 2024 for €1.3 billion. Vodafone’s effective ownership in Vantage Towers fell to 44.7 percent. Total proceeds from Vantage Towers stake sales reached €6.6 billion.
UK Merger: Vodafone UK and Three UK
Vodafone is also reshaping its portfolio through consolidation rather than outright divestment. The UK Competition and Markets Authority approved the £16.5 billion merger of Vodafone UK with Three UK, expected to complete in 2025.
BABURAJAN KIZHAKEDATH