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|Vodafone to sell 9% additional stake to Aditya Birla Group post merger|
| PTI |
Friday, April 21, 2017 | 19:34 IST
Vodafone has agreed to sell 9.5 per cent additional stake to Aditya Birla Group for Rs 130 per share after they merge their telecom operations to create the country's largest operator worth more than $23 billion. Aditya Birla Group has filed with the BSE the composite scheme of amalgamation between Vodafone and Idea Cellular, which stated that the merged entity shall be under the joint control of the two firms and will be governed by the shareholders' agreement.
In the merged entity, Vodafone will hold 50 per cent stake, while Aditya Birla Group hold 21 per cent. Upon completion of merger, Vodafone will transfer 4.9 per cent shares of merged entity to Aditya Birla Group for Rs 3,874 crore. Post such transfer, Aditya Birla Group shareholding will increase to 26 per cent and Vodafone shareholding will reduce to 45.1 per cent, according to the scheme. The remaining 28.9 per cent will be held by other shareholders.
Also, Aditya Birla Group will have the right to acquire more shares from Vodafone at a price of Rs 130 per share, in order to equalise the shareholdings over 4 years. If equal shareholding is not achieved within four years, Vodafone will sell down its shareholding to equalise its shareholding with Aditya Birla Group over the following 5 years, the scheme said.
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