Vodafone Group Plc of the U.K. has received the approval from the Indian cabinet to increase its stake in Indian telecom venture to 100 percent with an investment of $1.6 billion.
Vodafone, which exited from America by selling its stake in Verizon Wireless for $130 billion, will buy around 11 percent equity stake in the Indian telecom business unit from India’s Piramal Enterprises, and the remainder held by investors including Indian businessman Analjit Singh, to own 100 percent of Vodafone India.
This is the final approval.
Last year, India’s telecom ministry headed by Kapil Sibal proposed 100 percent foreign stake in Indian telecom service provider companies.
The deal was cleared by the Indian foreign investment regulator in December, but needed final approval from the cabinet.
During the December quarter, CGP India Investments, an indirect wholly owned Mauritian subsidiary of Vodafone Group Plc, proposed to acquire the entire indirect interest held by Analjit Singh and Neelu Analjit Singh in Vodafone India, through their 51 percent shareholding in share capital of Scorpios Beverages. In addition, Prime Metals, an indirect wholly owned Mauritian subsidiary of Vodafone Group Plc, proposed to acquire 10.97 percent of the shares of Vodafone India from Piramal Enterprises.
