Vodafone poised to take full control of Indian business

NEW DELHI Thu Apr 10, 2014 8:42pm IST

A man checks his mobile phone as he walks past a shop displaying the Vodafone logo on its shutter in Mumbai January 15, 2014. REUTERS/Danish Siddiqui/Files

A man checks his mobile phone as he walks past a shop displaying the Vodafone logo on its shutter in Mumbai January 15, 2014.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Vodafone Group Plc(VOD.L) said it expected to close on Friday a deal to buy an 11 percent stake in its Indian business from minority partner Piramal Enterprises Ltd (PIRA.NS), giving it full ownership.

Piramal said on Thursday it had agreed to sell its 11 percent stake to the British group for 89 billion rupees.

A Vodafone spokesman separately said the group had already completed a transaction to buy about a 4.5 percent stake in the business from Indian businessman Analjit Singh.

The deals are part of Vodafone's plan announced last October to take full control of Vodafone India Ltd for $1.7 billion, following a rule change allowing foreign carriers to fully-own their Indian subsidiaries.

Vodafone, which entered India in 2007 by buying Hutchison Whampoa's (0013.HK) local cellular assets in a $11 billion deal, directly and indirectly owns a combined 84.5 percent of Vodafone India, the country's No.2 telecoms company by users and revenue.

Piramal had bought the 11 percent stake in Vodafone India in two tranches during the financial year to March 2012 for 58.64 billion rupees. It is selling the stake to Prime Metals Ltd, which it said is an indirect subsidiary of Vodafone Group.

Piramal shares closed 2.9 percent higher on Thursday, having risen as much as 7.1 percent during the session.

(Reporting by Devidutta Tripathy. Editing by Jane Merriman)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-WTO Row

REUTERS SHOWCASE

Market Eye

Market Eye

Nifty falls most in nearly 3-1/2 weeks; Sensex down over 400 points  Full Article 

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Reviving Infosys

Reviving Infosys

CEO Sikka says to improve business with new growth avenues  Full Article 

Outlook Slashed

Outlook Slashed

ArcelorMittal cuts outlook as ore prices hit mining  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China, Asian factory growth gathers pace; Europe falters  Full Article 

Car Launch Ahead

Car Launch Ahead

Tata Motors bets on new sedan to revive weak India sales.  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage