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Worlds telecom operator Vodafone Plc on Friday entered Indian cellular market by picking 10% in Bharti Tele Ventures Ltd(BTVL) for $1.5 billion. Britians top cpmpany has directly acquired 106 million shares from Warburg Pincus, amounting to a 5.65% equity stake in BTVL. It has also acquired ,through a Mauritius subsidiary,an unspecified number of shares in the unlisted Bharti Enterprises. This gives it a beneficial 4.4% stake in BTVL,which is not raising any fresh capital or getting any proceeds from the sale. In return for the stake, Vodafone will get two sets on board of BTVL. Bharti in turn will benefit from Vodafones global scale in equipment purchases and also tap management talent from the company. Announcing the deal, Bharti group chairman, and MD Sunil Mittal said that an approval application had been filed with FIPB on Friday morning. The Warburg transaction was also completed today. He added"Singtel and Vodafone together are the two engines of this plane and driving it forward. We were keen to get a company of Vodafones size and expertise. We are set to go to the next level." Vodafone group CEO Arun Sarin said " I am here. Vodafone is here. Things that you have been written about are coming true. We have taken a 10% economic stake in BTVL. It is a great win for India, great win for Bharti and a great win for Vodafone. We like the direction India is taking and are voting with our feet and money." Mittal and Sarin also called on PM Mohan Singh to seek his blessings for the deal. |
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| Posted : 10/29/2005 |
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