Vodafone Group Plc (LON: VOD) have announced their structural changes for the firm’s senior board and global operations in an update released during Monday trading.
One of the headline changes was the removal of the Rest of the World regional organization.
Amid the new changes, the appointment of Vivek Badrinath was announced. Current Rest of World chief executive, as CEO of Vodafone’s new European tower business.
Badrinath’s appointment takes effect at the start of April 2020, with the tower business legally separated from Vodafone as a new organisation and becoming operational by May 2020.
Earlier this year, Vodafone announced a merger deal completed with INWIT SpA, the towers unit of fellow telecoms firm Telecom Italia (BIT: TIT).
Using this deal, Vodafone would combine its Italian tower portfolio with INWIT for €2.1 billion in cash plus a 37.5% stake in the combined business.
At present, this combined company is referred to by Vodafone as TowerCo and gives strong ground to complete this expansion move.
Earlier this year, Vodafone opted to cut its dividend by 40%, as the cost of the sale of its Indian arm and the upcoming global 5G network roll-out weighed upon profits.
Further, Vodafone will “simplify its management structure” by removing its Rest of World regional organisation entirely, starting in its financial year ending March 2021.
Also under this structural shift, Shameel Joosub, CEO of South Africa-based Vodacom Group Ltd, will join Vodafone group’s executive committee with effect from April 2020.
Group CEO Nick Read said: “I look forward to welcoming Shameel to Vodafone’s executive committee. This appointment will streamline the management of our businesses and reflects the significance of Vodacom within the group. Shameel has led our African operations through a period of sustained growth and he will be an excellent addition to our senior team.”
Vodafone still have other woes to attend to, after facing facing a bill for $4 billion (€3.58 billion) in respective fees, fines and interest after a Supreme Court ruling in India at the end of last month.
This will damage India’s entire mobile industry, but Vodafone Idea (NSE: IDEA) , in which Vodafone Group holds a 45% stake, faces the highest costs and is in the poorest position to pay.
Shares of Vodafone were up 0.63%, trading at 159p per share. 4/11/19 12:02BST.
