Vodafone Group has agreed to sell its 50% stake in Dutch joint venture VodafoneZiggo to partner Liberty Global for €1 billion ($1.08 billion) in cash. The transaction, announced Wednesday, serves as a cornerstone for Liberty Global’s plan to consolidate its Benelux assets into a new entity, Ziggo Group, ahead of a planned public listing in 2027.
Under the terms of the agreement, Vodafone will also receive a 10% equity stake in Ziggo Group, which will house both the Dutch operations and Liberty’s Belgian subsidiary, Telenet. The deal values VodafoneZiggo at approximately 7.1x its projected 2025 adjusted EBITDA. Shares of Vodafone rose 4% in London trading following the announcement, as investors cheered the cash infusion and continued portfolio simplification under CEO Margherita Della Valle.
Investor Implications & Market Sentiment
For institutional investors, the deal represents a “cleaner” equity story for both telecommunications giants. Vodafone secures immediate liquidity to shore up its balance sheet while retaining “upside” through its 10% minority interest. “This transaction delivers €1 billion in cash to Vodafone, and we have the potential for further value creation through our 10% stake in Ziggo Group, a business with greater scale,” said Della Valle.
Liberty Global, meanwhile, is pursuing a “pure-play” regional strategy. The company aims to list Ziggo Group on the Euronext Amsterdam exchange in 2027 and subsequently spin off its remaining 90% stake to shareholders. This mirrors Liberty’s recent successful spin-off of its Swiss business, Sunrise. Analysts suggest the move is designed to narrow the “conglomerate discount” that has long weighed on Liberty’s Nasdaq-listed shares.
Legal Exposure & Strategic Terms
The transition includes a decade-long service agreement where Vodafone will provide brand licensing and technical support for €625 million. Legally, the structure protects both entities; if the 2027 listing and spin-off do not occur within 18 months of closing—expected in H2 2026—Vodafone maintains a “put option” to sell its 10% stake to a third party.
Mike Fries, CEO of Liberty Global, described the move as creating a “regional powerhouse” capable of generating roughly €500 million in adjusted free cash flow by 2028. The deal remains subject to regulatory approvals from Dutch and European competition authorities.