Vodafone Group Plc on Friday said that it now has a 100 % ownership in its India mobile-phone unit Vodafone India Limited (VIL) after buying out 11 % stake owned by Piramal Enterprises Ltd in its Indian subsidiary.
Piramal Enterprises had on Thursday said that it will divest its entire equity stake, comprising 45,425,328 shares, in Vodafone India Limited to Prime Metals Ltd, an indirect subsidiary of Vodafone Group Plc, for a total of Rs. 8,900 crore, valuing the shares of Vodafone India Ltd. at Rs. 1,960 per share.
Vodafone has earlier in March completed the acquisition of indirect equity interests in VIL held by Analjit Singh and Neelu Analjit Singh, taking its stake to 89.03% of VIL. On Friday, Vodafone acquired the remaining 10.97% of VIL from Piramal Enterprises Limited.
The Foreign Investment Promotion Board approved both acquisitions on February 20, 2014, following receipt of the approval of the Cabinet Committee on Economic Affairs
"The combined cash consideration for both transactions was Rs 10,142 crores(£1.0 billion),” Vodafone said in a release.
“We are delighted to have secured 100% ownership of one of our fastest growing businesses,” said Vittorio Colao, CEO of Vodafone Group.
"Our business will continue to connect communities and offer the best products and services – from entertainment to our innovative money transfer service, M-Pesa – to enhance the lives of Indians throughout the country,” he added.