|Rediff India Abroad Home | All the sections|
Vodafone buys 10% stake in Bharti Tele for Rs 6,700 crore
October 28, 2005 12:49 IST
Last Updated: October 28, 2005 14:02 IST
Vodafone Group Plc, the world's leading mobile firm, on Friday acquired a 10 per cent stake in Sunil Mittal-promoted Bharti Televentures Ltd for Rs 6,700 crore ($1.5 billion).
This is the single largest foreign investment in India so far.
For its 10 per cent stake, Vodafone picked up 5.65 per cent stake from Warburg Pincus and 4.4 per cent through Bharti Enterprises.
Bharti Enterprises maintains a controlling interest of 45.9 per cent in the company through its subsidiary, Bharti Telecom Ltd. With the final sale of its stake, Warburg Pincus has now completely exited its position in the company, Bharti Tele informed the Bombay Stock Exchange on Friday.
Vodafone, through Vodafone Mauritius Ltd, has contracted to subscribe shares in Bharti Enterprises, giving it a beneficial stake in the company of 4.4 per cent.
In addition Vodafone, through Vodafone International Holdings BV, has also picked up 5.65 per cent stake from Warburg Pincus, thereby taking the total beneficial interest in the company to around ten per cent.
Vodafone has made a total investment of approximately Rs 6,700 crore to acquire around ten per cent interest in the company, including the acquisition of shares held by Warburg Pincus.
"We are delighted that Vodafone has made a call on the Indian telecom sector and has chosen BTVL to be the vehicle to develop its continued interest in the Asian region. Bharti has had the privilege of tying up with 'best in class' blue chip companies, from around the world who have come and joined hands with Bharti, at different stages, to develop the telecom sector in India," Bharti Tele chairman and managing director Sunil Bharti Mittal said.
Bharti Tele shares meanwhile surged by 6 per cent on the stock market on a day when most other stocks are down.
7333: The Latest News on Your Mobile!