Positive connection

30 January 2017 By Liam Proud Follow @liamwardproud

The UK-based group is discussing an all-share merger of its India business with Idea Cellular, part-owned by cement-to-retail Aditya Birla Group. Combined, they could take the fight to sector upstart Jio. Vodafone might also be better-placed for M&A back in Europe.

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UK-based telecoms firm Vodafone on Jan. 30 said it is in discussions with the Aditya Birla Group over an all-share merger of Vodafone India and Idea Cellular, the India-based telco in which Aditya Birla Group is the largest shareholder.

Vodafone said that the talks excluded its 42 percent stake in telecoms infrastructure business Indus Towers.

Any merger would be take place via the issuance of new shares in Idea to Vodafone, and would result in Vodafone deconsolidating Vodafone India.

Idea also confirmed the discussions on Jan. 30, stating that a "fundamental premise of preliminary discussion is based on equal rights between Aditya Birla Group and Vodafone in the combined entity."

Shares in UK-listed Vodafone were up by more than 2.6 percent to 198.5 pence as of 1102 GMT. Idea shares closed 25 percent higher.

Context News

Vodafone said that the talks excluded its 42 percent stake in telecoms infrastructure business Indus Towers.

Any merger would be take place via the issuance of new shares in Idea to Vodafone, and would result in Vodafone deconsolidating Vodafone India.

Idea also confirmed the discussions on Jan. 30, stating that a "fundamental premise of preliminary discussion is based on equal rights between Aditya Birla Group and Vodafone in the combined entity."

Shares in UK-listed Vodafone were up by more than 2.6 percent to 198.5 pence as of 1102 GMT. Idea shares closed 25 percent higher.

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