UK (United Kingdom) telecom major company Vodafone on Thursday reported that it has exited sold its 4.2% stake in the Indian telecom major company Bharti Airtel Ltd to Bharti Enterprises (Holding) Pvt Ltd for $200 million.
“Vodafone confirms that it has sold, through a wholly-owned subsidiary, its shareholding in Indian major telecom company Bharti Infotel Pvt. Ltd., representing an approximate 4.2 percent interest in Bharti Airtel Ltd, to Bharti Enterprises (Holding) Private Limited for USD $200 m (million),” the company statement in a report.
As per report, in year 2005, Vodafone had picked 10% stake in Bharti Airtel. Following its entry into the Indian market with its buyout of Hutchinson stake in Hutch Essar, Vodafone brought its stake in Bharati Airtel down to 5%.
This British Telecom Vodafone decision has to sell its entire stake in largest Indian telecom operator Bharti Airtel with following new norms issued by government that bars a telecom operator from holding any kind of stake in competition under unified licences (UL) regime in Department of Telecommunication.
“The disposal follows the new UL regime in India published by the Department of Telecoms which prohibits the holding by a group of an interest in more than one licensee company in the same service area,” the statement said.
From reports of Vodafone in a late night statement, confirmed the sale of its share in Bharati Infotel Pvt Ltd, representing an approximate 4.2% interest in Bharati Airtel Ltd, through a “wholly-owned subsidiary” to Bharti Enterprises (Holding) Pvt Ltd for $200 million.