Vodafone Seeks to Reduce Small Shareholders on its Register

In such a manner of which is similar to many large FTSE companies, Vodafone is seeking to reduce the overall number of small shareholders on its register. And this is precisely the reason that at least half a million private shareholders in Vodafone will, in fact, receive a pack of which outlines how they can sell or add to their existing holdings.

In doing so, Vodafone is additionally presenting some pretty attractive terms for those who are interested. For instance, shareholders with 50 shares or less can sell for free; this may be of particular interest for those with paper-based shares as making a “certificated” trade by way of a high-end bank can cost a flat fee of at least £30 to £60.

Vodafone has a well-known corporate history with regards to its success of takeovers and mergers of which boasts significant rise to its vast numbers of private shareholders, many of whom have only a few tens of shares. In fact, an abundant number of Irish shareholders actually ended up on the firm’s register, as they had been some of the original investors in regards to the privatization of Ireland’s Telecom Éireann (of which was later renamed Eir) in 1999. Eircell was eventually sold to Vodafone only two years later, and the shareholders were each given one Vodafone share for each of the Eir shares that they had held.

So who exactly can benefit from selling their existing Vodafone holdings? Well to start of, it is important to note that you need to own one of the Vodafone shares directly; in other words, you must be listed on Vodafone’s shareholder register. If you receive regular communications from Vodafone of which relate to annual meetings, dividend payment, etc. it is likely you are on their register. However, if you own the shares via a nominee account with a stock broker, you aren’t eligible.

If you are on the register and want to sell, here is some general information to get you started: selling 50 shares or less is free, 51 to 1,000 electronically-held shares cost 15p per share (€0.21 in Ireland) capped at £30 (€42) and certificated shares cost 25p per share (€0.35 in Ireland) capped at the same £30 (€42). For those who want to add to their holdings, buying shares is possible where existing investors seek to spend between £1,000 and £10,000, in which the costs will be a flat £30 (€42). (Disclaimer: This is not investment advice) We are not Vodafone and official information can be found on their website along with free contact number.

You can even save yourself the hassle of selling your existing shares by simply donating them. Small holdings may be given to charity by way of ShareGift (which is an organization created specifically created to bundle together smaller parcels of shares in which to sell them more efficiently). ShareGift was created 18 years ago and they have since raised and donated over £16m. One of the excellent reasons to donate to ShareGift is simply the savings, as Vodafone shareholders who decide to donate their shares via ShareGift do not have to pay any dealing costs.