In a bid to take full control of its operations in India, Vodafone Group will buy out its India partners Analjit Singh and Piramal Enterprises, The Economic Times reports. To achieve complete ownership, the company will end up paying Rs 10,141 crore. Since the change in FDI in telecom policies earlier this year, Vodafone has been trying to get government approvals for complete ownership of its domestic operations.
Currently Analjit Singh owns 24.65 percent of shares which are worth Rs 8,900 crore, while Piramal Enterprises own 10.97 percent of shares worth Rs 1,241 crore. The Foreign Investment Promotion Broad will consider Vodafone Group’s proposal today after DoT approved the company’s proposal earlier this week. The only obstacle in this bid is the unusual difference in valuations of the holdings of both the parties, which is currently being investigated after an NGO filed a PIL in Delhi High Court.
If all goes well, Vodafone Group will buy the rest of 64.38 percent shares via M/s CGP Mauritius, which is an indirect shareholder in Vodafone India and an indirect Mauritius subsidiary of Vodafone International Holdings (VIBHV).
According to a separate ET report, Vodafone has revealed that it also plans on investing nearly $3 billion in India over to the next two years. The main aim of this investment is to expand its networks, especially in rural India.