Vodafone: Too Early to Say if It Will Relocate Headquarters After 'Brexit' Vote

By Simon Zekaria

LONDON--Vodafone Group PLC (VOD.LN) said Friday it is "too soon" for the telecommunications giant to know whether Britain leaving the European Union will mean it will have to relocate its headquarters, as one of the country's biggest corporates analyzes the impact of the historic vote on the future of its operations.

Vodafone, the world's second-biggest mobile operator by subscribers after China Mobile Ltd. (0941.HK) is based in Newbury, England and employs more than 13,000 people across the U.K. Most of its sales come from key operations in Europe across Spain, Italy and Germany, while in recent years it has also accelerated growth in fast-growing emerging telecoms markets like India and Turkey.

Vodafone moving its headquarters out of Britain would be a enormous blow to the U.K. economy, which is roiled by deep uncertainty following Thursday referendum result which saw more than half the country back Britain leaving the bloc, otherwise known as 'Brexit'.

Vodafone Chief Executive Vittorio Colao, alongside many other business leaders occupying the blue-chip FTSE 100 index, came out fervently in favor of the U.K. remaining in the EU, saying it was good for jobs and investment.

In a statement Friday, Vodafone said: "It is too soon to form a view on the implications of the referendum outcome for the domicile of the group."

It tried to soften the blow by stressing that the firm is well-placed to resist change.

"The political and economic consequences of the U.K.'s withdrawal from the EU are for others to consider now that the U.K. electorate has reached its decision. In terms of the implications for Vodafone, each of our country businesses operates as a standalone entity able to adapt to a wide range of local conditions. As we said before the referendum, we remain committed to supporting our U.K. customers regardless as to the outcome, now and in the future."

At 1240 GMT, Vodafone shares slipped 2.8% to 212 pence, valuing the company GBP57.9 billion ($79.4 billion).

 
--Write to Simon Zekaria at [e-mail] 
 

(END) Dow Jones Newswires

June 24, 2016 09:09 ET (13:09 GMT)

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