Vodafone takes full control of Vodafone India business

VARINDIA- INDIA'S FRONTLINE IT MAGAZINE

 

A shocking revelation has been made. As per the latest announcement,Ajay Piramal and Analjit Singh have sold their stakes in Vodafone Indiato the Vodafone Group. This has enabled the Vodafone Group to take full control of its local telecom venture. Going by the reports, Piramal Enterprises has sold the 10.97% stake for Rs.8,900 crore and Analjit Singh has sold his 24.65% stake for Rs.1,241 crore.

Here it is important to note that Vodafone has completed the acquisition of indirect equity interests in VIL held by Analjit Singh and Neelu Analjit Singh, taking its stake to 89.03% of VIL, in March 2014. Now, Vodafone has acquired the remaining 10.97% of VIL from Piramal Enterprises Limited. The combined cash consideration for both transactions was INR10,142 crore (£1.0 billion).

The Foreign Investment Promotion Board approved both acquisitions on 20th February, 2014, following receipt of the approval of the Cabinet Committee on Economic Affairs.

Vittorio Colao, CEO, Vodafone Group, said, "We are delighted to have secured 100% ownership of one of our fastest-growing businesses. Vodafone is strongly committed to India and we have invested significantly over many years to bring communications to millions of people for the first time. Our business will continue to connect communities and offer the best products and services - from entertainment to our innovative money transfer service, M-Pesa - to enhance the lives of Indians throughout the country."

Since Vodafone acquired its original interest in India from Hutchison in 2007, VIL’s customer base has grown around 550% - from 30 million to just over 164 million customers. VIL is a truly pan-Indian business, operating in all 22 circles and providing employment to nearly 100,000 people directly......See More