Vodafone takeover delayed

14 Nov 2013

Vodafone’s plans to buy out the local partners in its Indian subsidiary have been pushed back by delays at the Foreign Investment Promotion Board (FIPB), which must give its approval before a foreign company can take 100% ownership of a local operator, Cellular News writes. The FIPB could not rule on the acquisition as it is still waiting for comments from relevant ministries and departments. Approval from the Cabinet Committee on Economic Affairs is also needed for the takeover, as the planned USD1.65 billion deal exceeds the government threshold of INR12 billion (USD188.4 million) for unregulated transactions. As previously noted by CommsUpdate, Vodafone’s planned buyout follows the recent relaxation of foreign direct investment (FDI) rules in the telecom sector, which lifted the maximum equity a foreign company could hold in an Indian business to 100% from its previous 74%.

India, Vodafone India