Vodafone seeks FIPB approval for 100% stake in India unit

The company remains bullish on the country despite tax disputes

UK-based Plc has sought approval to raise the stake in its India unit to 100 per cent for Rs 10,141 crore, showing that the world's second biggest mobile operator remains bullish on the country despite tax dispute with authorities and a gloomy business environment.

applied to the Foreign Investment Promotion Board (FIPB) for approval to raise stake in India to 100 per cent from the current combined direct and indirect holding of 84.5 per cent.

After the approval, the matter will go to Cabinet Committee on Economic Affairs (CCEA) upon whose approval India is expected to become the first mobile operator in the country to be fully owned by a foreign company.

The government had in August relaxed rules to allow foreign companies to own 100 per cent of their businesses here instead of previous limit of no more than 74 per cent.

"confirms it has filed an application with the to increase its holding in India Ltd from 64.38 per cent to 100 per cent," the firm said in a statement.

Vodafone, which entered India in 2007 by buying Hutchison Whampoa in Hutchison-Essar Ltd in a USD 11 billion deal, directly holds 64.38 per cent stake in India.

The telecom major has been slapped with a tax liability of over Rs 11,200 crore, along with interest, for the acquisition and is in discussions with the government to resolve the issue.

It will buy minority investors including billionaire industrialist Ajay Piramal, who holds 11 per cent stake in India's second largest telecom company by subscribers. The remaining 25 per cent interest is with undisclosed minority shareholders, who are understood to include Analjit Singh, non-executive chairman of India.

said it has always maintained that it would like to increase its holding in the business and the plan of further investment demonstrates Vodafone's long-term commitment to India.

"The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs 10,141 crore. Following the completion of these transactions, will also consider providing additional funding to VIL by subscribing to equity shares of VIL," said.

image
Business Standard
177 22
Business Standard

Vodafone seeks FIPB approval for 100% stake in India unit

The company remains bullish on the country despite tax disputes

Press Trust of India  |  New Delhi 

UK-based Plc has sought approval to raise the stake in its India unit to 100 per cent for Rs 10,141 crore, showing that the world's second biggest mobile operator remains bullish on the country despite tax dispute with authorities and a gloomy business environment.

applied to the Foreign Investment Promotion Board (FIPB) for approval to raise stake in India to 100 per cent from the current combined direct and indirect holding of 84.5 per cent.



After the approval, the matter will go to Cabinet Committee on Economic Affairs (CCEA) upon whose approval India is expected to become the first mobile operator in the country to be fully owned by a foreign company.

The government had in August relaxed rules to allow foreign companies to own 100 per cent of their businesses here instead of previous limit of no more than 74 per cent.

"confirms it has filed an application with the to increase its holding in India Ltd from 64.38 per cent to 100 per cent," the firm said in a statement.

Vodafone, which entered India in 2007 by buying Hutchison Whampoa in Hutchison-Essar Ltd in a USD 11 billion deal, directly holds 64.38 per cent stake in India.

The telecom major has been slapped with a tax liability of over Rs 11,200 crore, along with interest, for the acquisition and is in discussions with the government to resolve the issue.

It will buy minority investors including billionaire industrialist Ajay Piramal, who holds 11 per cent stake in India's second largest telecom company by subscribers. The remaining 25 per cent interest is with undisclosed minority shareholders, who are understood to include Analjit Singh, non-executive chairman of India.

said it has always maintained that it would like to increase its holding in the business and the plan of further investment demonstrates Vodafone's long-term commitment to India.

"The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs 10,141 crore. Following the completion of these transactions, will also consider providing additional funding to VIL by subscribing to equity shares of VIL," said.

RECOMMENDED FOR YOU

Vodafone seeks FIPB approval for 100% stake in India unit

The company remains bullish on the country despite tax disputes

UK-based Vodafone Plc has sought approval to raise the stake in its India unit to 100 per cent for Rs 10,141 crore, showing that the world's second biggest mobile operator remains bullish on the country despite tax dispute with authorities and a gloomy business environment. Vodafone applied to the Foreign Investment Promotion Board (FIPB) for approval to raise stake in Vodafone India to 100 per cent from the current combined direct and indirect holding of 84.5 per cent. After the FIPB approval, the matter will go to Cabinet Committee on Economic Affairs (CCEA) upon whose approval Vodafone India is expected to become the first mobile operator in the country to be fully owned by a foreign company. The government had in August relaxed rules to allow foreign companies to own 100 per cent of their businesses here instead of previous limit of no more than 74 per cent. "Vodafone confirms it has filed an application with the FIPB to increase its holding in Vodafone India .. UK-based Plc has sought approval to raise the stake in its India unit to 100 per cent for Rs 10,141 crore, showing that the world's second biggest mobile operator remains bullish on the country despite tax dispute with authorities and a gloomy business environment.

applied to the Foreign Investment Promotion Board (FIPB) for approval to raise stake in India to 100 per cent from the current combined direct and indirect holding of 84.5 per cent.

After the approval, the matter will go to Cabinet Committee on Economic Affairs (CCEA) upon whose approval India is expected to become the first mobile operator in the country to be fully owned by a foreign company.

The government had in August relaxed rules to allow foreign companies to own 100 per cent of their businesses here instead of previous limit of no more than 74 per cent.

"confirms it has filed an application with the to increase its holding in India Ltd from 64.38 per cent to 100 per cent," the firm said in a statement.

Vodafone, which entered India in 2007 by buying Hutchison Whampoa in Hutchison-Essar Ltd in a USD 11 billion deal, directly holds 64.38 per cent stake in India.

The telecom major has been slapped with a tax liability of over Rs 11,200 crore, along with interest, for the acquisition and is in discussions with the government to resolve the issue.

It will buy minority investors including billionaire industrialist Ajay Piramal, who holds 11 per cent stake in India's second largest telecom company by subscribers. The remaining 25 per cent interest is with undisclosed minority shareholders, who are understood to include Analjit Singh, non-executive chairman of India.

said it has always maintained that it would like to increase its holding in the business and the plan of further investment demonstrates Vodafone's long-term commitment to India.

"The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs 10,141 crore. Following the completion of these transactions, will also consider providing additional funding to VIL by subscribing to equity shares of VIL," said.
image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard