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Sebi looking at open offer angle in Idea-Vodafone deal

Press Trust of India  |  New Delhi 

Markets regulator is considering if the proposed of firm with Vodafone Plc's unit will trigger an open offer, sources said.

Securities and Exchange Board of (Sebi), in May this year, had sought clarification from on the proposed The company had submitted the scheme of arrangement, or plan, to the regulator in April.

In March, Vodafone and announced the merger of their operations to create the country's largest mobile phone operator worth more than USD 23 billion with a 35 per cent market share.

As part of the proposal, Vodafone India will initially hold 50 per cent stake in the merged entity.

Later, the British firm will own 45.1 per cent of the combined entity while the Aditya Birla group, Idea's parent company, will hold 26 per cent after paying Rs 3,874 crore for a 4.9 per cent stake.

The remaining 28.9 per cent will be held by other shareholders.

According to sources, is examining the possibility if the proposed merger would trigger open offer under 'takeover' norms.

Under the takeover norms, if an entity acquires 25 per cent stake in a listed firm, it has to make an open offer for an additional 26 per cent from public shareholders.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 13 2017. 16:48 IST