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

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

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:

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Reuters India Mobile

Reuters India Mobile

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