Vodafone PLC likely to be sole collaborator in Indian unit

Vodafone PLC had earlier moved to the Foreign Investment Promotion Board (FIPB) with its application to acquire 100 percent stake in Vodafone India. CNBC-TV18 has now accessed that application and learns that Vodafone PLC has told the FIPB that it will be the sole foreign collaborator in Vodafone India, once the proposed deal goes through, reports CNBC-TV18’s Nayantara Rai.

When the press release was issued by Vodafone, it stated that Vodafone PLC would be investing as much as Rs 10,041 crore to get that 100 percent stake but all of that is going to be equity. The company is not planning to raise any debt to fund this transaction. The two minority shareholders Analjit Singh and the Piramal Group would be making an exit. There is no documentation which says how much the two shareholders will make, but it is likely to be a tidy sum. Mauritius based CGP will buyout 51 percent that Analjit Singh holds in Vodafone India. Analjit Singh will be exercising put options which have been agreed to at a prior date and this will be inline with the Reserve Bank guidelines. The Mauritius subsidy of Vodafone called Prime Metal that is going to buyout Piramal's stake and each of this transaction will be funded via equity of Vodafone. Vodafone PLC is also telling the Indian government that it will be the only shareholder in this telecom arm.