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Vodafone plans to invest Rs 80 billion in proposed joint venture with Idea

The merger of Vodafone with Idea is in last leg of government approval, in which the the British firm is expected to have not more than 47.5% stake

Press Trust of India  |  London 

Vodafone

plans to invest €1 billion or about Rs 80 billion in the proposed joint venture with Cellular, which is expected to be in place this month, according to its annual report.

The operator will look at monetising its stake in if it requires to make additional investment in India, in case the decides to put in additional fund in the proposed merged entity, Limited.

“Idea’s equity raise of €0.8 billion in January 2018, which Group will match at the time the merger closes; combined with other adjustments, we currently estimate a net capital injection into of up to €1 billion at closing in June 2018,” Vodafone Read said in annual report.

The merger of Vodafone with is in last leg of government approval, in which the the British firm is expected to have not more than 47.5 per cent stake.

The merged entity will be largest telecom operator in India, with a subscriber base of around 430 million.

“The company’s financial leverage is currently high on a pro-forma basis. In the event that in the future the joint venture partners decide to put in additional funding, the Group would draw upon the value of its stake in Indus Towers,” Vodafone said.

The company has 42 per cent stake in India’s largest mobile tower firm paid dividends of €138 million to the during 2017-18.

On April 25, 2018, Vodafone, and Idea announced the merger of Indus Towers into

Bharti Airtel and Vodafone will jointly control the combined company, and Vodafone will be issued 783.1 million new shares in the combined company, in exchange for its shareholding in Indus Towers.

The Indus Tower-deal has given to sell its full 11.15 per cent shareholding in Indus Towers for cash, which would be equivalent to a 29.4 per cent shareholding in the combined company.

Telecom duo names heads for new entity

and have announced appointment of nine executives each from their teams as circle heads for the merged entity, which is proposed to operate as Vodafone Idea Limited, industry sources said.

The announcement is learnt to have been made by Kumar Mangalam Birla, non-executive chairman of the proposed entity, in an internal communication to employees.

Both the have already announced top leadership team who will run the merged entity.

Emails sent to Idea and Vodafone elicited no reply. Vodafone will own 45.1 per cent in the combined entity, while will have 26 per cent and Idea shareholders 28.9 per cent.

First Published: Sat, June 09 2018. 02:03 IST
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