Vodafone to buy 10 per cent in Bharti Tele-Ventures for Rs 67 billion

MUMBAI: India's rapidly expanding phone market is attracting the interest of foreign companies. Vodafone Group, the world's biggest mobile-phone company, is buying 10 per cent stake in Bharti Tele-Ventures Ltd (BTVL) for approximately Rs 67 billion ($1.5 billion).

Vodafone will buy out the entire 5.6 per cent stake Warbus Pincus held in BTVL. The other 4.4 per cent will be through the purchase of part of Bharti Enterprises Ltd, according to an official release. Bharti Enterprises maintains a controlling interest of 45.9 per cent in BTVL through its subsidiary, Bharti Telecom Ltd. Singapore Telecommunications owns around 30 per cent in Bharti Tele-Ventures.

Recently, the government had allowed foreign companies to invest up to 74 per cent in Indian phone companies. Earlier, the cap on foreign investment was 49 per cent. Vodafone had exited from India a few years back after selling its minority stake in RPG Cellular to Aircel, the largest mobile operator in Tamil Nadu.

Commenting on the deal, Bharti chairman and Group managing director Sunil Bharti Mittal said: “We are delighted that Vodafone has made a call on the Indian telecom sector and has chosen BTVL to be the vehicle to develop its continued interest in the Asian region. Bharti has had the privilege of tying up with ‘best in class’, blue chip companies, from around the world who have come and joined hands with Bharti, at different stages, to develop the telecom sector in India. At the time when the western world started hanging up on India, it brought in Asia’s telecom powerhouse, SingTel, to replace Telecom Italia and British Telecom.

Warburg Pincus, making its second largest investment in the history of the firm, supported the company in developing the strategy and investor focus, in its public listing. Today, when Bharti stands on the threshold of being an Asian telecom powerhouse, it has tied up with Vodafone to take the company to the next level and to support Bharti in achieving its vision of making Airtel the most admired brand in India. Bharti is fortunate to have four strong pillars to achieve its vision.

The entrepreneurial leadership of Bharti Enterprises, the Asian telecom powerhouse – SingTel which will continue to be our leading partner, the world’s largest telecom operator – Vodafone and, the most important one, a world-class management team.”

Added Vodafone Group PLC CEO Arun Sarin: “We are entering a relationship with a major company, which shares our vision and values and understands, as we do, the enormous potential of mobile telephony in society. This transaction is consistent with Vodafone's strategy of developing our global footprint in growth markets, where we can create value for shareholders.”

Bharti Tele-Ventures is one of India's leading private sector provider of telecommunications services with an aggregate of 15.13 million customers as of end of September '05, consisting of approximately 14.07 million mobile customers. The company is the only operator to provide mobile services in all the 23 circles in India. It also provides telephone services and Internet access over DSL in 15 circles.

Latest Reads

BTVI brings power packed line up to decode Budget 2018

As the Central Government gears up to present the last full budget before elections in 2019, India’s premiere English business news channel, BTVI has launched a power packed line up of shows in the run up to Union Budget 2018. Given the significance of this budget, the channel has aptly introduced...

iWorld Over The Top Services
hoichoi launches new brand anthem to celebrate life

After entertaining audiences with the best in Bengali entertainment, hoichoi, the world’s largest digital platform exclusively for Bengali content, has now launched its brand anthem. The anthem is an ode to celebration and talks about taking a break from busy schedules, getting together and having...

iWorld Over The Top Services
Live coverage of Australian Open 2018: #LIVtheGrandSlam

SonyLIV, the premium OTT platform of Sony Pictures Networks India (SPN), is all set to stream the Australian Open 2018. Also, known as the ‘Fans Slam’, the Australian Open is chronologically the first of the four Grand Slam Tennis events of the year. It will play out on SonyLIV from 15-28 January...

iWorld Over The Top Services
Launch of 1st indian sports radio channel - sports flashes

Sports Flashes, India’s biggest Multi-sports app launched the first Sports Radio Channel of India.

iWorld Over The Top Services
Sports fans power 35-40% of traffic on SonyLiv

MUMBAI: Contrary to popular opinion, SonyLiv is attracting a significant quantum of viewership courtesy its base of hardcore sports fans. Despite a concerted effort to provide entertainment across genres, sporting events have managed to pull in the eyeballs for the over-the-top (OTT) player in...

iWorld Over The Top Services
Amazon prime music inks a deal with zee music company

Amazon today announced a content deal with Zee Music Company that will add over 450 film soundtracks in Hindi & regional languages alongside 250 Independent artist content thus adding to the wide catalogue of millions of Indian and International songs on Amazon Prime Music. Soon to be launched...

iWorld Over The Top Services
Airtel offers free Amazon Prime subscription on plan

Bharti Airtel and Amazon India have joined hands to ring in an entertaining new year for customers. New and existing Airtel postpaid customers with an infinity plan of Rs 499 or above will get a one-year Amazon Prime membership, worth Rs 999 for free.

iWorld Over The Top Services
Evergent expands internationally and opens sales offices in india and south america

a leading provider of cloud-based, user lifecycle management solutions for video service providers, today announced the opening of two new sales offices in Mumbai, India and Sao Paulo, Brazil that will service the India, South Asian and South American markets supporting customers and partners —...

iWorld Over The Top Services

Neeraj Bhargava

Kinsane to launch a digital-first kids' entertainment company

Kinsane Entertainment Inc (Kinsane) is ready to storm the kids’ entertainment space globally. A digital-first company, Kinsane will create content for kids aged 2-11 years in numerous languages and distribute that content globally through a variety of advertising, subscription and transaction-...

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories