Vodafone and Vi Conclude CLAM Settlement, Resolving Post-Merger Disputes

Vodafone Group Plc has finalized a conclusive deal with Vodafone Idea Limited (Vi) to settle the Contingent Liability Adjustment Mechanism (CLAM)—a framework established to manage pre-merger financial obligations between the two entities following their 2017 consolidation of Vodafone India and Idea Cellular.

Settlement Terms and Financial Structure

The agreement brings closure to all substantial disagreements between the companies regarding accumulated liabilities. Originally, Vodafone’s potential liability exposure under the CLAM was set at 83.69 billion Indian rupees, though this was subsequently adjusted downward to 63.94 billion Indian rupees.

Under the finalized arrangement, Vodafone will make a cash remittance of 219 million euros and allocate 3.28 billion shares in Vi to Vi’s account, representing a 3.03% stake position in the company.

Zero Net Cash Impact

A critical element of this settlement is its neutral cash position for Vodafone. The telecom group will compensate the 219 million euros payment through offsetting credits against service charges owed by Vi to Vodafone Group, resulting in no net outflow of cash. This structure effectively transforms the settlement into a balance-sheet adjustment rather than a direct cash transaction.

Current Shareholding Position

Following this settlement, Vodafone maintains its existing 16.07% ownership stake in Vi, with the agreement serving as a final resolution to disputes rooted in the historical merger process.