Vodafone in bid to fully own India unit
LONDON: Vodafone Group Plc asked the Indian government for permission to raise the stake in its local unit to 100 per cent and said it would pay about 101.4 billion rupees (RM5.21 billion) for the holding.
Vodafone made the request to the Foreign Investment Promotion Board, it said yesterday. The price for the additional 15.5 per cent stake in Vodafone's largest business by subscribers implies a 654.2 billion rupee value for the entire division. The mobile-phone operator already owns 64.4 per cent directly and 20.1 per cent through subsidiaries.
Once Vodafone gets full control, it will consider investing additional cash through share subscriptions, it said.
The Indian unit accounts for 9.8 per cent of its annual revenue.
"We have always said we would like to increase our holding in the business and this investment demonstrates Vodafone's long-term commitment to India," it said.
"Looking ahead, Vodafone will continue to invest in India." Bloomberg