Vodafone in talks with government to own 100 percent shares in India unit for $1.65 billion
Following the recent relaxation in the FDI policy which allowed a foreign telecom player to hold 100 percent share in a telecom setup in India, Vodafone is now seeking government approvals to own 100 percent stake in its India operations, Reuters reports. Vodafone is reportedly planning to invest an additional capital of Rs 101.41 billion or $1.65 billion to subscribe to the rest of the shares of its subsidiary in India. Reportedly, Telecommunications Minister Kapil Sibal has told that Vodafone is talking to the Indian government about its plans to invest more in Vodafone India.
Vodafone acquired the Hutchison Whampoa’s cellular operations in India by getting in to a $11 billion deal in 2007. The company currently directly owns 64.38 percent of the share in the Vodafone India unit. The rest of the shares are held by India’s Piramal Enterprises (with 11 percent of share in Vodafone India) and other investors. However with the new rules rolled out by the Ministry of Foreign Policies removed the 74 percent cap for any foreign telecom investor’s asset in a telecom company in India, Vodafone is now allowed to own 100 percent share in its unit in India.