Thursday, September 9, 2010

Vodafone Announces Reorganization

Vodafone Group Plc has simplified its organizational structure with a goal of focusing on its key commercial and financial priorities: customer and commercial strength, leadership in data, brand advocacy, cost efficiency and shareholder returns. Accountability for the Group's operating companies will be brought into two operating regions', to reflect the different nature of assets/geographies and different development of the sector in various economies:

  • Europe: comprising all of the existing controlled businesses in Europe, plus the Czech Republic, Hungary, Romania and Turkey. Michel Combes will continue to be the Regional CEO in charge of the Europe Region.

  • Africa, Middle East and Asia Pacific: comprising all emerging economies in Africa, the Middle East and Asia, plus Australia, New Zealand and Fiji. Nick Read will be the Regional CEO in charge of this Region.

The Group CEO, CFO and Strategy & Business Development Director will be responsible for effecting strategies to maximize shareholder value from Vodafone's investments: Verizon Wireless, SFR, Polkomtel and Bharti Holding, which will no longer be held within the regional structures.

Group Marketing, Vodafone Business Services, Vodafone Global Enterprise, Partner Markets, and other commercial units will be combined into a new organization, Group Commercial, which will be responsible for all commercial activity. This unit will be headed by Morten Lundal as Group Chief Commercial Officer (CCO) and he will report to the Group CEO.

All Technology functions in Vodafone's operating companies will report into Group Technology. Steve Pusey, as Group CTO, will report directly to the Group CEO.

Earlier last week, Vodafone announces plans to sell its entire 3.2% interest in China Mobile and the continuation of commercial and technology cooperation between the companies. Vodafone expects the cash consideration to be approximately £4.3bn before tax and transaction costs. The company plans that approximately 70% of the net proceeds will be returned to shareholders by way of a share buyback with the remainder used to reduce the Group's net debt.

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