KUALA LUMPUR: India’s Telecommunications Department has approved the proposed amalgamation between Idea Cellular Ltd, Vodafone India Ltd and Vodafone Mobile Services Ltd, making Axiata Group Bhd
a financial investor in the country's largest telecommunications operator, a statement from Axiata said.
The merged entity is Vodafone Idea Ltd and will have a customer base of 440 million, representing 39% of the total market share.
Axiata has been a significant and strategic shareholder in Idea for the last 10 years.
It has consistently proposed the formation of a more sustainable industry structure through market consolidation.
As a strategic investor with approximately 20% stake in Idea over the last 10 years, the merger of equals between Vodafone India and Idea as announced in March 2017, dilutes the Group’s stake at completion to below 10%.
Despite the merger providing a robust value creation platform for the consolidated business, it effectively changes the status of Axiata’s stake in Idea from being a strategic investment to a simple investment, said the statement.
Limited time offer:
Just RM5 per month.
