Vodafone to transfer Bharti stake by Nov '08

Vodafone, which acquired controlling stake in mobile firm Hutch-Essar, today said it will transfer its 5.6% stake in Bharti Airtel back to the Indian mobile leader by November next year.

Following acquisition of control in Hutch-Essar for $10.9 billion in cash, Vodafone had entered into a share sale agreement with Bharti regarding its 5.6% equity holding in the company.

"The shareholding will be transferred in two tranches, the first before March 31, 2008 and the second by November 2008," Vodafone said in a statement after announcing its annual results for the year ended March 31.

"Following the completion of this sale, the group will continue to hold an indirect stake of 4.39% in Bharti Airtel," it added.

Vodafone completed the purchase of the Hutch-Essar stake from Hong-Kong based Hutchison Telecom International (HTIL) on May 8.

The UK company paid $10.9 billion in cash to HTIL, as against the previously agreed price of $11.08 billion, reflecting retention and closing adjustments agreed between Vodafone and HTIL.

Vodafone said Bharti Airtel irrevocably agreed on May 9 to purchase its 5.6% shareholding and it expects to receive $1.6 billion in cash for this shareholding by November 2008.

Vodafone chief Arun Sarin said: "The last year has seen a further reshaping of Vodafone's portfolio, with our acquisitions in Turkey and India further increasing the group's exposure to the exciting growth opportunities in emerging markets. We are well placed to continue delivering on our strategy."