Bharti buys Vodafone's 5.6% stake for $1.6bn

UK telecom giant Vodafone has offloaded its 5.6% direct stake in India's mobile leader Bharti Airtel to promoter Sunil Mittal's group for $1.6 bn coinciding with its acquisition of controlling stake in Hutch-Essar.

"Vodafone has sold its 5.6% direct stake in Bharti Airtel to the group," Bharti Group Chairman Sunil Mittal said, elaborating that the deal was on a deferred payment basis.

Vodafone will, however, continue to hold an indirect 4.4% stake in the company, as a financial investor and will not have any representation on Bharti Airtel's board nor any management rights.