If you have held Vodafone shares since before 2014, your portfolio is likely more complicated than you realize.
In February 2014, Vodafone sold its 45% stake in Verizon Wireless (the US mobile giant). They didn’t just keep the cash; they distributed it to shareholders.
The “Return of Value” Deal For every Vodafone share you owned, you received:
- Cash: A small payment.
- Verizon Shares: New shares in Verizon Communications Inc, listed in New York.
- A Share Consolidation: The number of Vodafone shares you held was reduced (6 new shares for every 11 old ones).
The Problem for UK Investors Suddenly, millions of British pensioners owned US stock.
- The “Lost” Cheques: The Verizon shares were often small. Many people sold them immediately for a cheque (which they then lost) or were put into a “Share Dealing Account” they forgot about.
- The Tax Headache: Because Verizon is a US company, UK holders started receiving US tax forms (W-8BEN). Many assumed this was a scam and ignored it, leading to their accounts being frozen.
How to Check Your Holding
- Vodafone: The UK register is managed by Computershare.
- Verizon: The US register is also managed by Computershare (but the US branch).
- Action: You may have two separate accounts to check. If you have “lost” your Verizon windfall, you need to contact Computershare’s specific “Corporate Actions” team to trace the 2014 entitlement.
Don’t have your US paperwork? Divica can help you trace the history of the 2014 split and identify if you have unclaimed Verizon shares or uncashed dollar cheques waiting for you.