Vodafone sells its 4.2% stake in Bharti Airtel for $200 million
The new unified licensing regime in the Department of Telecommunication leads to Vodafone's sale of its stake in Bharati Airtel.business Updated: May 29, 2015 10:03 IST
UK telecom major Vodafone has sold its 4.2% stake in Bharti Airtel Ltd to Bharti Enterprises (Holding) Pvt Ltd for $200 million.
In 2005, Vodafone had picked 10% stake in Bharti Airtel. Following its entry into the Indian market with its buyout of Huntchinson stake in Hutch Essar, Vodafone brought its stake in Bharati Airtel down to 5%.
Vodafone's decision to offload its stake in largest telecom operator in India, in terms of subscribers base, follows the new unified licence (UL) regime in Department of Telecommunication.
The UL regime prohibits holdings by any group in more than one licensee company in the same service area.
Vodafone in a late night statement, confirmed the sale of its share in Bharati Infotel Pvt Ltd, representing an approximate 4.2% interest in Bharati Airtel Ltd, through a "wholly-owned subsidiary" to Bharti Enterprises (Holding) Pvt Ltd for $200 million.
First Published: May 29, 2015 08:37 IST