Vodafone India gets FIPB go-ahead to acquire YOU Broadband

Vodafone India, the country’s second-largest telecom operator, has received a go-ahead from the government to acquire YOU Broadband India for Rs 55.09 crore.

you-broadband

“Approval has been sought by Vodafone India Ltd, a 1000/o foreign owned company, for acquisition of 100o/o shares M/s You Broadband India Limited by way of transfer from resident shareholders and non-resident shareholder,” according to a notice issued by the department of Economic Affairs (FIPB Unit), Ministry of Finance.

According to the notice, the Department of Economic Affairs has also accepted a facto proposal of You Broadband for an acquisition of 9,79,875 equity shares of its downstream company M/s Digital Outsourcing Private Limited (DOPL) instead of issue of 20,58,759 equity shares to its resident shareholders by way of the swap of shares.

Vodafone India had inked a pact to buy YOU Broadband for around Rs 400 crore in March 2016. YOU Broadband India Ltd has around 3,000 km of optic fibre and 6,000 km of last-mile cables to homes across 12 cities, including Mumbai, a key data market for Vodafone. It was owned by TRG Capital.

Vodafone is also in the process of merging its Indian unit with Kumar Mangalam Birla owned Idea Cellular, which will create India’s largest mobile phone company by revenue and subscribers.

As per the official statement, Vodafone will own 45.1% in the combined entity after transferring 4.9% to the promoters of Idea Cellular for Rs 38,740 crore in cash post the merger. Kumar Mangalam Birla and other promoters of Idea will hold 26%, while the public will own the rest.

6
Leave a Reply

avatar
Photo and Image Files
 
 
 
5 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
6 Comment authors
KaushikDushielalitAshishPrithvi Recent comment authors
newest oldest most voted
Kaushik
Kaushik

Interesting. Contrary to popular opinion, I do believe Vodafone will buy out idea and not the other way around. But in either case, the final Victor of idea-vodafone combo will become a triple play operator. They now only need to invest in some DTH company to become a quad play operator.

Dushie
Dushie

Waiting for Jio Fibre now as that would be a game changer just the way they created a 4G Volte revolution

Recent Posts

Airtel Digital TV Offering Discounted NCF of Rs 80 on Second Connection, Reveals Multi-TV Policy

More and more DTH operators are coming up with their multi-TV policies as the days pass. The new mandate by...

BSNL Revision Spree Continues, Telco Reduces Validity of Rs 666 Prepaid Plan

Since the start of February 2019, BSNL has been aggressively revising its tariff plans. While some of the changes it...

Individual Channels vs DTH Recommended Packs After Trai Mandate: How it Affects Your Overall Monthly Bill?

The Telecom Regulatory Authority of India’s new mandate regarding the prices of channels and cable TV subscription has brought a...