Vodafone’s Indian unit to merge with Idea Cellular
Mumbai — Vodafone Group’s Indian unit agreed to merge with Idea Cellular to create a wireless company that is more than twice as big as AT&T by subscribers — and a new leader in a market that is has become even more competitive after India’s richest man offered phone calls for free. Vodafone will own 45.1% of the combined company, after selling a 4.9% 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% holding, with the remainder being held by the public. The new company is worth $23.2bn, based on the combined enterprise value of $12.4bn for Vodafone India and $10.8bn for Idea Cellular. Shares of Idea Cellular jumped as much as 14% in Mumbai. The enlarged wireless operator would have 395-million subscribers, exceeding those of market leader Bharti Airtel. Vodafone would gain a listing in the world’s second-largest wireless market, which it has been considering since at least 2...
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