VodafoneThree sees £1.3bn in first-year capex

(Sharecast News) - Telecoms firms Vodafone UK and £ said their newly-merged company planned to spend £1.3bn on capital expenditure in its first year. The combined business, named VodafoneThree, is 51% owned by Vodafone and 49% by CKHGT. Vodafone will fully consolidate VodafoneThree in its financial results, the two companies said on Monday in a statement.

Vodafone UK CEO Max Taylor will lead the merged group while Three UK's Darren Purkis is appointed chief financial officer, the two companies said in a statement.

It also expects £700m a year in cost and capex synergies by the fifth year after completion, although no figures were given on potential job losses, with the deal becoming accretive to Vodafone's adjusted free cash flow from full-year 2029 onwards.

Reporting by Frank Prenesti for Sharecast.com