Vodafone Group PLC (VOD.LN) said Thursday that Aditya Birla Capital Ltd. (540691.BY) will buy a minimum stake of 2.5% of the entity resulting from the merger of Vodafone's Indian operations with Idea Cellular Ltd. (532822.BY).
Vodafone said it will receive minimum proceeds of 256 million euros ($308.0 million) from the sale, and that its ownership in the combined entity is expected to be approximately 47.5% at completion of the merger.
The merger of Vodafone India with Idea--the country's second and third-largest mobile operators, respectively--was announced in March 2017.
The purchase of the 2.5% interest by Aditya follows the increase in its ownership in Idea to 47% from 42%, as a result of a fundraising by the Indian carrier, Vodafone said.
Under the original merger agreement, Aditya is expected to reach a shareholding of 26% in the merged entity, Vodafone said.
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(END) Dow Jones Newswires
January 04, 2018 04:38 ET (09:38 GMT)