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Vodafone Group PLC on Wednesday said it has reached an agreement with Vodafone Idea Ltd on the final amount payable under the contingent liability adjustment mechanism. The Berkshire, England-based telecommunications company said it has also reached an agreement for Vodafone Idea, or Vi, to settle outstanding Vodafone service charges. It said this agreement closes all open issues between Vodafone and Vi. The CLAM was entered into at the time of the 2017 merger between Vodafone India and Idea cellular. Under the CLAM, Vodafone’s maximum exposure was capped at €793 million. Taking into account payments already made, the reduced exposure was capped at €606 million. As a result of this deal, Vodafone will fully settle the CLAM through a cash payment of €219 million and setting aside 3.28 billion of Vodafone’s shares in Vi for Vi’s benefit. Vi will have the right to instruct Vodafone to sell these shares, with any cash proceeds being transferred to Vi. Vodafone noted that the final settlement does not constitute a net cash payment, as Vi will settle €219 million of outstanding Vodafone service charges. Vodafone said both the service charges and its investment in Vi shares are carried at nil value in the Vodafone balance sheet. It said it currently has a 16% shareholding in Vi, and the shares being set aside are equivalent to a 3.0% shareholding. Shares in Vodafone closed up 0.4% at 98.88 pence on Wednesday in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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