**Summary**
Vodafone Group Plc announced on December 31, 2025, that it has reached a final agreement with Vodafone Idea Limited (Vi) regarding the Contingent Liability Adjustment Mechanism (CLAM), which was part of the 2017 merger between Vodafone India and Idea Cellular. The agreement resolves all outstanding issues between the two companies.
Under the terms
1. **CLAM Settlement** Vodafone will settle its CLAM obligations through a €219 million cash payment and by setting aside 3,280 million of its shares in Vi (equivalent to a 3.03% stake) for Vis benefit. Vi can instruct Vodafone to sell these shares, with proceeds transferred to Vi.
2. **Service Charges** Vi will settle €219 million in outstanding service charges owed to Vodafone Group, offsetting the cash payment and resulting in no net cash outflow for Vodafone.
3. **Financial Impact** Both the outstanding service charges and Vodafones investment in Vi shares are carried at nil value on Vodafones balance sheet.
This agreement closes all material open issues between Vodafone and Vi, with Vodafone retaining a 16.07% shareholding in Vi post-settlement.
**Key Points**
CLAM settled via cash and shares.
No net cash impact for Vodafone.
All material issues between Vodafone and Vi resolved.
Vodafone retains 16.07% stake in Vi.