Vodafone Plc which entered India after buying out Hutch in the Hutch Essar JV has withdrawn its board representation on Bharti Airtel Ltd. Vodafone has also decided to sell 5.61% stake in Bharti Airtel Ltd [PDF] in two tracnhes. Vodafone Plc had bought 10% stake in Bharti Airtel Ltd in two blocks – 5.61% from VC firm Warburg Pincus and 4.39% by way of convertible debentures in Oct-2005. Since then the value of its holding has appreciated by 150%. However, Vodafone is receiving mere $1.6 Billion for its 5.61% stake [at the current Market Price of Bharti Airtel, it is worth $2.2 Billion] in Bharti Airtel Ltd and will continue to hold the remaining 4.39%.
Vodafone had paid around $1.5 Billion for the entire 10% stake in Bharti Airtel Ltd. Vodafone will cash in on this remianing 4.31% stake sometime in the future or maybe at the time when they will buy out the Essar group from the Vodafone Essar JV in India.
Tags: Mobile India, Telecom India, Vodafone, Bharti