Vodafone to sell direct stake in Bharti

By IANS

New Delhi : Global mobile telecom giant Vodafone, which acquired Hutch-Essar from Hong Kong-based Hutchison Telecommunications International by paying $10.9 billion, Tuesday said it would sell its entire direct shareholding stake in rival Bharti Airtel by November 2008.


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Vodafone currently owns 9.99 percent stake in Bharti Airtel, of which 5.60 is direct and which it would be divesting to Bharti for $1.6 billion. The company has also decided that the shares would be off-loaded in two phases.

"On 9 May 2007, the Bharti group company irrevocably agreed to purchase this shareholding and the group expects to receive $1.6 billion in cash consideration for such shareholding by November 2008," Vodafone said in a statement.

"The shareholding will be transferred in two tranches, the first before 31 March 2008 and the second by November 2008. Following the completion of this sale, the Group will continue to hold an indirect stake of 4.39 percent in Bharti Airtel."

Earlier this month, Vodafone said it would invest $2 billion within two years in the Hutch-Essar telecom venture to rollout its network in the rural market, expand infrastructure and improve tele-density in the country.

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