Vodafone Group and Idea Cellular will initially equally own the venture. The European carrier will control 45.1 percent of the combined company after selling a 4.9 percent stake in the new entity to billionaire Kumar Mangalam Birla’s holding companies, according to a stock exchange filing Monday. Birla’s companies will take a 26 percent holding, with the remainder being held by the public.
The enlarged wireless operator would have 395 million subscribers, exceeding those of market leader Bharti Airtel Ltd. The transaction will help Vodafone unload an unprofitable business that has prompted it to announce $12 billion of additional investment and writedown to fight competition from billionaire Mukesh Ambani’s start up.
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To read more see the full post at: Vodafone, Idea Agree on Merger to Create India Mobile Leader - Bloomberg