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Question

Vodafone Return of Value

Answer

Payments in respect of Cash Entitlements.

We aim to have the proceed from cash entitlements added to your portfolio on 6 March 2014 the rate of cash will be US$0.4928005 for each existing ordinary share.

Please be aware if you elected to receive your cash payment as ‘Income', this will be paid through your chosen dividend payment method.

If your dividends are paid to your internally to your trading account this payment will show in your account 6 March 2014.

If your dividends are paid externally to your nominated bank account this will be sent via the BACS payment system and credit your nominated account in 3-5 business days.

Please note that we will not be implementing the automatic dividend option to this payment.

If you chose a ‘capital' option your cash payment will be credited by the same method in which your trades settle. If this is into your trading account this will show on 6 March 2014. If your trades normally settle to your nominated bank account this will take 3-5 working days to show.

Verizon Fractional Payments

On the 05 March 2014 your portfolio will show a ‘Verizon fractional cash' line of stock. This will appear on your portfolio for approximately 24 hours and relates to your fractional entitlement to Verizon shares. This stock will be exchanged for an equivalent fractional cash payment and will be credited to your portfolio shortly after.

The Verizon fractional cash security will carry no value and is not available to sell.

Please note we only pay fractional payments of £5 or above.

Payments in respect of Cash Entitlements.

We aim to have the proceed from cash entitlements added to your portfolio on 6 March 2014 the rate of cash will be US$0.4928005 for each existing ordinary share.

Sale of Verizon Communication CDIs

Please be aware if you selected either Option 1 or 2 to ‘SELL' the Verizon Communications CDIs, the CDIs were sold on the 26 February 2014 at a price of £27.7426 per CDI, the proceeds of this sale will be available on your portfolio on Monday 03 March 2014.

Consolidation ratio and allocation of CDIs announced

Vodafone has announced the consolidation ratio for Vodafone and Verizon shares:

Consolidation ratio: 6 new shares for 11 existing shares

Verizon ratio: 0.0263001 shares in Verizon Communications for each Vodafone share held

Vodafone have announced the rate of cash will be US$0.4928005 for each existing ordinary share.

Further details can be found on the Vodafone website:

http://www.vodafone.com/content/index/media/vodafone-group-releases/2014/vz-shares-and-ratio-announcement.yes.html

VODAFONE ANNOUNCEMENT

Vodafone has announced details of a return of value and related share consolidation by means of a scheme of arrangement. This means that as a Vodafone shareholder, your shareholding will change and you will receive a cash payment and an allocation of Verizon Communications Crest Depositary Interests (CDIs), which you will need to instruct us to either sell or transfer to another broker.

PLEASE NOTE THE DEADLINE FOR RESPONSES WAS 14 FEBRUARY 2014, WE NOW CANNOT ACCEPT RESPONSES

WHAT IS HAPPENING?
The Company is proposing to return approximately USD83.2 Billion of the proceeds it is due to receive from the sale of its interest in Verizon Wireless with shareholders expected to receive USD23.9 Billion of cash and Verizon Communication CDIs.

As a shareholder in Vodafone you will receive a return of value in 2 forms, cash and an allocation of Verizon Communication CDIs.

You have two choices to make;

Take your return of value, both the cash and Verizon Communications CDIs, as income (treated as Income for tax purposes) or capital (treated as capital gain for tax purposes). This is an important decision and depends on your personal tax position. Please consult your accountant or financial advisor if you are unsure.

Sell or Transfer your allocation of Verizon Communication CDIs. Unfortunately, due to operational restrictions, we are unable to hold this particular CDI in your MarketMaster, Investment ISA or SIPP account. Therefore, you will need to decide to either sell or transfer the CDIs to another broker.

The exact number of Verizon Communications CDIs and the consolidation ratio are expected to be announced on 19 February 2014 with the amount of cash to be received to be announced on 21 February 2014.

KEY DATES:
14 February
- Final response date. This is the date that we must receive your instruction by or we will apply the default option.

19 February - Consolidation ratio and allocation of CDIs announced, this will outline the changes to your existing Vodafone holding and the amount of Verizon Communication CDIs you will receive.

20 February (6pm) - Record Date (The cut off date the market uses for an event).

21 February - Amount of cash to be returned announced, this will confirm the amount of cash you will receive.

24 February (8am) - Ex-Date (You must be holding the stock on this date and time in order to be entitled to participate).

4 March -Payments in respect of Cash Entitlements.

Your options at a glance; There are 4 options:
1.Sell your CDIs and treat both cash and CDIs as income (default)
2.Sell your CDIs and treat both cash and CDIs as capital
3.Transfer your CDIs to another broker and treat both cash and CDIs as income
4.Transfer your CDIs to another broker and treat both cash and CDIs as capital

In relation to the above options, due to operational restrictions we are unfortunately unable to hold this particular CDI in your MarketMaster, Investment ISA or SIPP account. Therefore, you will need to decide to either sell or transfer the CDIs to another broker.

ADDITIONAL INFORMATION
Holders will receive 1 B share (Capital Option) or 1 C share (Income Option) based on their election for each ordinary share held and will be able to have the B shares (Capital Option) cancelled in consideration for the receipt of the relevant amount of Verizon Communications CDIs and the relevant amount of cash in US Dollars.

or

To receive the relevant amount of Verizon Communications CDIs and the relevant amount of cash in US Dollars by way of a special distribution on the C shares with the C shares subsequently cancelled or repurchased.

SELL
If you elect to sell your Verizon Communications CDIs, we will aim to update your account within five business days of receiving the proceeds.

CASH
Proceeds from the cash component of the return of value will be converted into Sterling using the prevailing exchange rate at the time of receipt of funds. We will aim to update your account within five business days of receiving the cash.

PROBATE
If you are receiving this letter as the executor of a deceased account holder, please note you are only able to provide corporate action responses once Probate has been granted and is registered with us. If this is not the case, the default option will be applied to the account.

CONSOLIDATION
Further details of the consolidation and the impact it may have on your existing shareholding are due to be announced by Vodafone on 19 February. Please check the Vodafone investor website for further details.

Further information can be found on the Vodafone website

Vodafone Shareholder guide

 

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