Bharti Televentures to sell 10-per cent stake to Vodafone

By Rex Mathew
28 October 2005

Setting at rest mounting speculation this morning, it was announced today that Vodafone would acquire a 10-per cent economic interest in Bharti TeleVentures (BTVL), India's largest private sector telecom company.

This is the first major deal in the telecom sector after the recent cabinet decision to hike FDI limit in the telecom sector to 74 per cent.

The whole deal would cost Vodafone Rs6,700 crore (around $1.5 billion) making it the largest single foreign investment ever in India and also the largest in the Indian telecom sector. Bharti Enterprises continues to hold shareholding and management control in Bharti TeleVentures.

Till the announcement came at an urgently called press conference at 11:00 am at the The Oberoi, New Delhi, the entire morning was caught in the grip of rumours that Bharti TeleVentures might announce a sell-off to either SingTel, which has 30-per cent stake in Bharti or the Vodafone group, whose global head Arun Sarin was in India recently.

Arun Sarin, Vodafones, global head is currently in New Delhi. The media had been speculating in recent months about Vodafone planning to acquire a significant stake in an Indian telecom company, fuelled by Sarin's earlier visit last month.

At the press conference it was announced that Vodafone will acquire a direct 5.6-per cent stake in Bharti Televentures through Vodafone International Holdings BV, from private equity firm Warburg at around Rs350 per share, higher than the prevailing market price.