DEAL CONTOURSUnder the deal, Vodafone will own 45.1 percent of the merged entity, after it transfers about 4.9 percent to promoters of Idea or their affiliates for 38.74 billion rupees ($592.15 million) in cash, Idea said. REUTERS/Danish SiddiquiKumar Mangalam Birla (L), chairman of Aditya Birla Group, shakes hands with Vittorio Colao, CEO of Vodafone Group, after a news conference in Mumbai, India March 20, 2017. REUTERS/Shailesh Andrade/File PhotoKumar Mangalam Birla (L), chairman of Aditya Birla Group, listens to Vittorio Colao, CEO of Vodafone Group, during a news conference in Mumbai, India March 20, 2017. Aditya Birla Group, the majority owner of Idea, will own 26 percent while other shareholders will own the remaining 28.9 percent. REUTERS/Danish Siddiqui/File PhotoFILE PHOTO: A man casts silhouette onto an electronic screen displaying logo of Vodafone India after a news conference to announce the half year results in Mumbai, India, November 10, 2015.
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REUTERS/Danish SiddiquiKumar Mangalam Birla (L), chairman of Aditya Birla Group, listens to Vittorio Colao, CEO of Vodafone Group, during a news conference in Mumbai, India March 20, 2017. Kumar Mangalam Birla (L), chairman of Aditya Birla Group, shakes hands with Vittorio Colao, CEO of Vodafone Group, after a news conference in Mumbai, India March 20, 2017. "Idea is strong where Vodafone is weaker, Vodafone is strong where Idea is weaker." REUTERS/Danish SiddiquiMUMBAI Britain's Vodafone Group and Idea Cellular agreed on Monday to merge their Indian operations in a $23 billion deal, creating the country's biggest telecoms business after the entry of a new rival sparked a brutal price war. Aditya Birla Group, the majority owner of Idea, will own 26 percent while other shareholders will own the remaining 28.9 percent.
"I have no doubt that the Indian market will remain competitive but nothing can be free forever and we will be in a better position." DEAL CONTOURS Under the deal, Vodafone will own 45.1 percent of the merged entity, after it transfers about 4.9 percent to promoters of Idea or their affiliates for 38.74 billion rupees ($592.15 million) in cash, Idea said. That has forced India's three biggest operators - Bharti, Vodafone and Idea - to slash prices and accept lower profits, and sparked a wave of consolidation. Idea said the rough deal price worked out at 72.5 rupees per share, adding that this figure was for illustrative purposes and was not the actual price. But Vodafone and Idea said they will look to reduce their tower assets exposure, including selling their stakes in the joint venture.
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Vodafone, Idea in $23 billion deal to create new Indian telecom leader
REUTERS/Danish SiddiquiKumar Mangalam Birla (L), chairman of Aditya Birla Group, listens to Vittorio Colao, CEO of Vodafone Group, during a news conference in Mumbai, India March 20, 2017. Kumar Mangalam Birla (L), chairman of Aditya Birla Group, shakes hands with Vittorio Colao, CEO of Vodafone Group, after a news conference in Mumbai, India March 20, 2017. "Idea is strong where Vodafone is weaker, Vodafone is strong where Idea is weaker." REUTERS/Danish SiddiquiMUMBAI Britain's Vodafone Group and Idea Cellular agreed on Monday to merge their Indian operations in a $23 billion deal, creating the country's biggest telecoms business after the entry of a new rival sparked a brutal price war. Aditya Birla Group, the majority owner of Idea, will own 26 percent while other shareholders will own the remaining 28.9 percent.
Vodafone, Idea in $23 bln deal to create new Indian telecom leader
"I have no doubt that the Indian market will remain competitive but nothing can be free forever and we will be in a better position." DEAL CONTOURS Under the deal, Vodafone will own 45.1 percent of the merged entity, after it transfers about 4.9 percent to promoters of Idea or their affiliates for 38.74 billion rupees ($592.15 million) in cash, Idea said. That has forced India's three biggest operators - Bharti, Vodafone and Idea - to slash prices and accept lower profits, and sparked a wave of consolidation. Idea said the rough deal price worked out at 72.5 rupees per share, adding that this figure was for illustrative purposes and was not the actual price. But Vodafone and Idea said they will look to reduce their tower assets exposure, including selling their stakes in the joint venture.
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collected by :Jack Luxor
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