Vodafone could raise $1b by divesting Bharti stake

Dylan Bushell-Embling
29 Jul 2010
00:00

Vodafone would raise over $1 billion if it follows through on hints it will sell its minority stake in Bharti Airtel.

Vodafone currently owns a 4.4% stake in Bharti, which under current valuations is worth around 52 billion rupees ($1.11 billion), Business Standard said.

While the company declined to comment when the Standard asked about its plans for the stake, last week CEO Vittorio Colao indicated plans to start divesting non-core minority investments.

Vodafone is already on record as being unhappy with keeping a minority stake in Bharti, and is under increasing pressure from its shareholders to improve profitability.

The operator may consider selling up to fellow Bharti shareholders the Mittals or SingTel.

Vodafone acquired a 10% stake in Bharti Airtel for $1.5 billion in 2005. But Vodafone subsequently sold half this stake after buying Hutchison's 67% stake in what is now Vodafone Essar.

MORE ARTICLES ON BHARTI AIRTEL, INDIA, M&A, VODAFONE, VODAFONE ESSAR

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