UK-based Vodafone on Friday said it now fully own its Indian subsidiary with the acquisition of equity stakes held by Analjit Singh and Piramal Enterprises for Rs. 10,142 crore.
The company in March 2014, had said it completed the acquisition of indirect equity interests in Vodafone India Limited (VIL) held by Analjit Singh and Neelu Analjit Singh, taking its stake to 89.03 per cent in the local unit.
It acquired the remaining 10.97 per cent of VIL on Friday from Piramal Enterprises Limited.
“The combined cash consideration for both transactions was Rs. 10,142 crore,” it said in a statement.
After the government allowed foreign companies to own up to 100 per cent in Indian telecommunication carriers, Vodafone had announced plans in October 2013 to take full control of the India unit by buying out minority partners for a total of Rs. 10,141 crore.
The Foreign Investment Promotion Board okayed both acquisitions on February 20, this year, following approval from the Cabinet Committee on Economic Affairs.
The deal makes Vodafone the first foreign telecom company to take full control of an Indian operator.
“We are delighted to have secured 100 per cent ownership of one of our fastest growing businesses. Vodafone is strongly committed to India and we have invested significantly over many years to bring communications to millions of people for the first time,” Vodafone Group CEO Vittorio Colao said.
The company said since entering India in 2007, VIL’s customer base has grown around 550 per cent, from 30 million to just over 164 million customers.
The company said it continues to invest in network and has built over 95,000 base stations since 2007, taking the total to 1,20,000 units, extending the coverage to 83 per cent of the country.
“In the same period, VIL has contributed over Rs. 70,000 crore to the Indian exchequer,” it said.