UK operator Vodafone now owns 100% of Vodafone India after buying out minority investors in the mobile operator.
The group purchased a 4.5% stake from local businessman Analjit Singh in March, boosting its direct and indirect holdings to 89%….
UK operator Vodafone now owns 100% of Vodafone India after buying out minority investors in the mobile operator.
The group purchased a 4.5% stake from local businessman Analjit Singh in March, boosting its direct and indirect holdings to 89%. Yesterday, Vodafone bought the remaining 11% from conglomerate Piramal Enterprises.
The cash consideration for both transactions was Rs101.4bn (US$1.7bn).
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.
Despite being still embroiled in a US$2.6bn tax dispute, Vodafone has been keen to expand in India to take advantage of growth opportunities. Its unit is already the country’s second-largest operator out of 12.
Last September, Vodafone India CEO Marten Pieters said the company was financially strong in the country and wanted scale, but that India’s regulatory conditions were not suitable for M&A.
A couple of months later, the government approved new M&A guidelines, which are expected to encourage consolidation. Since then, the operator has been linked to a couple of potential acquisitions.
It also took part in a recent spectrum auction, spending Rs196bn (US$3.15bn) on additional spectrum in the 1,800 MHz in 11 circles. Vodafone India was the top bidder, along with Bharti Airtel.
Vodafone has a substantial war chest since the sale of its Verizon Wireless stake in the US for US$130bn last year.
