Indian conglomerate Piramal Enterprises has agreed to sell its 11% stake in mobile operator Vodafone India to UK giant Vodafone for Rs89bn (US$1.48bn).
Vodafone currently owns 64.38% of Vodafone India directly, and 84.5% when combined with its indirect…
Indian conglomerate Piramal Enterprises has agreed to sell its 11% stake in mobile operator Vodafone India to UK giant Vodafone for Rs89bn (US$1.48bn).
Vodafone currently owns 64.38% of Vodafone India directly, and 84.5% when combined with its indirect holdings. Piramal is the largest minority investor.
The British telco first expressed interest in buying out the minority partners in September last year, following the removal of a 74% ceiling for foreign investments in telecoms operators.
It subsequently received approval from the Indian government and the Foreign Investment Promotion Board (FIPB) to go ahead with the deal.
Piramal bought the shares in Vodafone India for Rs1,290 (US$21.5) each in 2012 and has now sold them for Rs1,960 (US$32.6) apiece.
Recent reports suggested that Telenor could follow in the footsteps of Vodafone and buy 100% of its Indian unit Uninor.
Sigve Brekke, the Norwegian company’s head of Asia, was quoted saying that Telenor is considering acquiring all the shares it does not own in the mobile operator “now that we know it’s allowed”. But he added that there is “no immediate plan to do this”.
