Vodafone Group Plc would is contemplating the buyout of minority shareholders of its Indian unit. It would also begin talks for the coming weeks, according to an individual familiar with the matter.
Vodafone has a 64.4% stake in its local unit, Vodafone India Ltd. It has not decided on how much it is planning to spend or the volume sought approved for purchase from the local foreign investment regulatory authority. This was confirmed by the individual who sought anonymity as deliberations were deemed private.
Should this occur, Vodafone would be the first wholly owned foreign telecommunications company in India since the country had relaxed its investment rules last July. The amendment made was the removal of the cap on foreign stakes in the industry to attract more investors to bridge the current account deficit and decling rupee.
Aside from the 64.4% direct stake in Vodafone India Ltd, the company also has 20.1% of the company indirectly through subsidiaries according to its annual report. The company also has call options on purchase holdings from companies with another 4.5% indirect stake.
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