World’s largest telecom operator by revenue, Vodafone Group is looking to sell its 4.39% indirect holding in Bharti Airtel, India’s largest telecom company. The British firm has bought 10% stake in Bharti in 2005, but sold nearly half of that after it entered the Indian market on its own in 2007.
The current stake could fetch up to $2 billion for Vodafone. Vodafone's chief executive Vittorio Colao confirmed that the company is looking at off-loading its minority stake. The promoters family, Mittal’s hold less than 30% stake in the company now, while Singapore Telecom company, SingTel is the largest shareholder with about 30.5%. SingTel’s stake is set to reach around 32% after a deal last month for another 1.52% indirect stake in the company.
At current valuation, Vodafone’s stake in Bharti could be worth around Rs 5,500 crore. This could be much higher going by the last month’s deal that saw SingTel buying the 1.52% stake for Rs 3,008 crore. At this rate, the stake could fetch Vodafone as much as Rs 8,700 crore.
Volkswagen buys stake in Suzuki
Europe’s largest car maker, Volkswagen has bought 20% stake in Indian carmaker Maruti’s Japanese parent Suzuki Motor Corp (SMC) for about $2.5 billion, a move aimed at enhancing its presence in small car segment in Asia. Maruti Suzuki accounts for over half the cars on Indian roads, giving Volkswagen the volumes it needs to topple Toyota Motor Company as the world’s largest carmaker with estimated sales of seven million units this year. In return, SMC would benefit from the European company’s expertise in hybrid cars.
ICICI puts 3i on block
ICICI group is in talks to sell its entire stake in 3i Infotech, its IT venture. According to sources in the investment banking circles global private equity firms Apax Partners, Carlyle and KKR have shown interest in buying ICICI’s 27% stake in 3i Infotech.
A potential acquisition would take the total investment to Rs 800-900 crore and will also require the buyer to launch a mandatory 20% open offer in the stock market.
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