Vodafone, Idea merger to create biggest telco in the country
In a news conference in Mumbai, Vodafone Group Plc Chief Executive Officer (CEO) Vittorio Colao and Aditya Birla Group Chairman Kumar Mangalam Birla said the merger would create a new champion of digital India. It would launch new services soon.
As the first step of the merger, Birla-owned Idea Cellular and Vodafone India would merge their operations at a swap ratio of 1:1. Then, Birla’s holding companies would buy a 4.9 per cent stake from Vodafone at Rs 110 per share, investing close to Rs 3,900 crore. This will increase Idea’s stake to 26 per cent and bring down Vodafone Plc’s stake to 45.1 per cent. The Birlas would have the right to acquire another 9.5 per cent stake from Vodafone in the next four years, so that both partners eventually hold an equal stake in the company (about 35.5 per cent each).