Vodafone wins full control of India division

Friday 11 April 2014 10.54
Vodafone takes full control of its Indian subsidiary in deals worth £1 billion
Vodafone takes full control of its Indian subsidiary in deals worth £1 billion

Global mobile phone giant Vodafone has taken full control of its Indian subsidiary in deals worth £1 billion (€1.2 billion), it confirmed today.

"Vodafone announces that it now owns 100% of its Indian subsidiary, Vodafone India Limited," the group said in a statement.

The company added it completed a deal in March to lift its VIL stake from 84.5% to 89.03%, after buying a stake from Analjit Singh and Neelu Analjit Singh.

And today it said it acquired the remaining 10.97% from Piramal Enterprises.
 
The combined cash consideration for both transactions was 101.418 billion rupees or £1 billion, it added.

Vodafone, which is still flush with cash from the sale of its US joint venture stake to partner Verizon for $130 billion, had last month snapped up Spanish cable firm Ono.

Analysts praised the latest deal as a "positive" development for the group.

In July 2013, India decided to allow full foreign ownership in telecommunication companies and ease overseas investment rules for several other sectors, as the government aimed to attract long-term foreign investment to boost sagging economic growth.

Keywords: india, vodafone