Vodafone has reportedly hired Rothschild to review a potential IPO of its Indian unit which could raise US$3bn-US$4bn.
The investment bank’s report on the potential transaction is due this August, after which time Vodafone will decide whether or not…
Vodafone has reportedly hired Rothschild to review a potential IPO of its Indian unit which could raise US$3bn-US$4bn.
The investment bank’s report on the potential transaction is due this August, after which time Vodafone will decide whether or not to proceed, according to multiple media reports.
UK-based Vodafone and Rothschild have both declined to comment.
Vodafone India is the country’s second-largest mobile operator behind Airtel with about 183.8 million customers.
In its results presentation for the year ended 31 March 2015, Vodafone said the Indian unit’s service revenues for the period were up 12.6% to £4.31bn driven by a growth in customers, accelerated 3G data uptake and stable voice pricing. Total revenues stood at £4.32bn, EBITDA at £1.28bn and the EBITDA margin at 29.6%.
Vodafone India was the third highest spender in the country’s record-breaking March spectrum auction, bidding a total Rs258.1bn (£2.78bn) for airwaves in 12 telecoms service areas (or circles).
Vodafone’s shares spiked last week after Liberty Global chairman John Malone was cited saying the UK operator would be a “great fit” for the cable group’s German, UK and Dutch units.
However, it is unclear how much of Vodafone Liberty might seek to acquire.
Allen & Overy telecoms head Tom Levine recently commented to TelecomFinance: “Liberty is unlikely to want all of Vodafone, and would likely structure the deal as a partial break-up, as the assets in emerging markets aren’t obviously attractive for them.”
In January 2012, a Vodafone spokesperson told TelecomFinance that the Indian unit was preparing for a potential IPO in future but declined to comment further.
Vodafone India’s former CEO Marten Pieters has previously been cited saying IPO plans will proceed once the company’s tax dispute with the government is resolved. According to the Economic Times, the dispute is worth about Rs200bn (US$3.1bn).
