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Vodafone will continue to pay Verizon dividend: CFO

A pedestrian passes a Vodafone store on Oxford Street in central London in this file photo. Vodafone expects to continue paying a dividend from its investment in Verizon Wireless, its financial chief told a German daily. – Reuters picA pedestrian passes a Vodafone store on Oxford Street in central London in this file photo. Vodafone expects to continue paying a dividend from its investment in Verizon Wireless, its financial chief told a German daily. – Reuters picFRANKFURT, Nov 28 – British mobile operator Vodafone Group Plc expects to continue to pay a dividend from its investment in Verizon Wireless, its financial chief told a German daily.

“As long as the business develops in the way it has recently there is reason to believe that the shareholders will receive significant sums in the future,” Andy Halford told newspaper Boersen-Zeitung.

US mobile operator Verizon Wireless announced earlier this month that it would pay US$8.5 billion (RM25.96 billion) in dividends to its two parent companies, Verizon Communications – which owns 55 per cent of Verizon Wireless – and Vodafone.

In the past, the dividend had been a bone of contention for Vodafone shareholders, anxious to get a return on their ownership in the top US wireless service. The dividend had been suspended from 2005 through 2010 while Verizon Wireless focused on paying down debt.

Separately, Halford told the newspaper that acquisitions would stay on Vodafone’s agenda.

Asked about Vodafone’s plans to list its Indian business, Halford said more clarity was needed regarding regulatory and tax issues.

“Only then will we decide on the timing of an IPO,” he said. – Reuters

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