British telecom major Vodafone Plc will hold the entire stake in its Indian arm through a dozen different companies, which are existing shareholders, after it buys out the minority stake held by Indian partners.
On Monday, the company sought India’s Foreign Investment Promotion Board (FIPB) approval to hike its holding in Vodafone India Ltd to 100 per cent from 64.38 per cent currently. The Newbury-based mobile giant intends to invest Rs 10,141 crore to purchase the stake it does not currently own.
Following the buyout, the total direct foreign shareholding in VIL would be 75.35 per cent and indirect holding at 24.65 per cent. There wouldn’t be any Indian shareholding in the company post the completion of the proposed buyout, according to FIPB documents filed by Vodafone.
Euro Pacific Securities, Mobilvest, Trans Crystal are among the eight companies that would be the direct foreign shareholders, while Telecom Investments India, Usha Martin Telematics and Omega Telecom Holdings are among the indirect shareholders, it said in the proposal, a copy of which was seen by
The level of foreign investment in VIL is currently 64.38 per cent, while the remaining is held by industrialist Ajay Piramal and minority shareholders, including Vodafone India Chairman Analjit Singh.
The 64.38 per cent stake is held by Vodafone International Holdings B.V. (VIHBV), a company incorporated in The Netherlands and a subsidiary of Vodafone Group Plc, through its wholly-owned subsidiaries.
CGP India Investments Ltd, an indirect shareholder in VIL and an indirect Mauritian subsidiary of Vodafone International Holdings B.V. (VIHBV) proposes to buy stake from Scorpios Beverages Pvt Ltd (SBP). CGP intends to acquire 51 per cent stake held by Analjit Singh and Neelu Analjit Singh in SBP.
Prime Metals Ltd, a shareholder of VIL and a wholly-owned Mauritian subsidiary of CGP, would acquire VIL’s 10.97 per cent stake from Piramal Enterprises, it added. The stake was acquired by Piramal Enterprises (formerly Piramal Healthcare) in two tranches in August 2011 and February 2012.
Vodafone also said that it received Piramal Enterprises’ consent for the transaction, while the transactions would be funded through Vodafone Group’s equity investments, it added.
Vodafone had entered India in 2007 after it acquired Hutchison Whampoa’s stake in joint venture company Vodafone Essar in an $11.5-billion deal. Essar Group was Hutchison Whampoa’s joint venture partner.
In July, the Government approved 100 per cent foreign direct investment in telecom — 49 per cent under the automatic route and the rest through FIPB approvals.