Vodafone sells 5.6-per cent Airtel stake to Bharti for $1.6 billion
12 Feb 2007
London: UK telecom giant Vodafone has divested its 5.6-per cent direct stake in India`s mobile leader Bharti Airtel to the Indian telecom company for $1.6 billion, coinciding with its acquisition of the controlling stake in Hutch-Essar.
According to Sunil Mittal, chirman, Bharti group, "Vodafone has sold its 5.6-per cent direct stake in Bharti Airtel to the group," elaborating that the deal was on a deferred payment basis.
Vodafone will, however, continue to hold an indirect 4.4-per cent stake in the company, as a financial investor, though it would not have any representation on Bharti Airtel's board nor any management rights.
Last year, the Bharti Group had brought Vodafone to India by making it a strategic partner. (See: Bharti Televentures to sell 10-per cent stake to Vodafone)
Bharti Group chairman Sunil Mittal was quoted as having said, "We are pleased to welcome Vodafone and congratulate them on their Hutch acquisition. Today, the Indian telecom sector is one of the most sought after in the world and the bid is a strong endorsement of the government policy to promote the Indian telecom sector."
He said Bharti and Vodafone have enjoyed a very fruitful relationship and both the companies would work with the industry to connect millions of people across India.
