The Vodafone Group has completed the 'economic closure of transaction' with Bharti Airtel, for acquiring 10 per cent stake in the Indian telecom service provider for about Rs 6,700 crore (Rs 67 billion).
After the deal was announced in October 2005, Vodafone in its filings with the Securities and Exchange Commission, US, had said the economic closing of the transaction was expected to occur in the first quarter of 2006.
In response to a Business Standard questionnaire, the Bharti Group confirmed that the economic closing has been completed as per Vodafone's filings and 'all necessary unconditional regulatory approvals and certain customary conditions for the acquisition of shares in Bharti Enterprises by Vodafone has also been granted'.
The Bharti Group said Vodafone has completed the acquisition of 5.61 per cent direct interest from Warburg Pincus in Bharti Airtel.
Following this, Bharti Airtelhas informed the stock exchanges that Vodafone International Holding BV had acquired 106.47 million shares, accounting for 5.63 per cent of the company's equity through an off-market deal.
Vodafone has the option to increase its stake in Bharti Airtelas the UK-based company had recently got the Foreign Investment Promotion Board's nod to acquire up to 49 per cent stake in Bharti Enterprises.
Currently, Vodafone holds just under 10 per cent stake in Bharti Enterprises, which translates to a 4.39 per cent economic interest in Bharti Airtel.
Vodafone's investment is the first case to be cleared by FIPB after the government raised the foreign investment limit for telecom services from 49 per cent to 74 per cent.
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