Summary
Verizon Communications Inc. (VZ) announced via an 8-K filing on November 12, 2012, that its subsidiary, Cellco Partnership d/b/a Verizon Wireless, declared significant distributions to its owners. The total distribution amount is $8.5 billion, to be paid out by December 31, 2012. This action is significant as it represents a substantial cash inflow for the parent company and its partner, Vodafone. Verizon Communications Inc. is set to receive approximately $4.675 billion in cash from these distributions, while Vodafone Group Plc will receive the remaining $3.825 billion. This distribution is based on their respective partnership interests in Verizon Wireless. Investors should note that this is a cash distribution from the operating subsidiary, reflecting the ongoing financial strength and operational success of Verizon Wireless at that time.
Key Highlights
- 1Verizon Wireless declared distributions totaling $8.5 billion.
- 2Distributions are expected to be paid by December 31, 2012.
- 3Verizon Communications Inc. (parent company) will receive approximately $4.675 billion.
- 4Vodafone Group Plc will receive approximately $3.825 billion.
- 5These distributions are proportionate to ownership interests in Verizon Wireless.
- 6The announcement was made via a Form 8-K filed on November 12, 2012.