SEBI Exempts Government from Open Offer in Vodafone Idea
Government to Acquire 34% Stake in Vodafone Idea
The Securities and Exchange Board of India (SEBI) has given the government a pass on making an open offer to Vodafone Idea (VIL) shareholders. This comes after the government’s plan to acquire a 34% stake in VIL by converting spectrum dues into equity.
Protecting Public Interest
SEBI whole time member Ashwani Bhatia explained that the government’s acquisition of shares in VIL is intended to protect the larger public interest.
Increasing Telecom Penetration in India
The conversion would raise the government’s holding in the company to nearly 49% from 22.6%. This would allow VIL to continue serving its customers and increase telecom penetration in India.
No Intent to Participate in Management
SEBI clarified that the Government of India (GoI) currently has no plans to participate in the management or board of VIL. There will be no change in control.
- SEBI exempts government from open offer in Vodafone Idea
- Government to acquire 34% stake in Vodafone Idea
- Acquisition aimed at protecting public interest
- Enables Vodafone Idea to continue servicing its customer base
- No intent to participate in management or board of Vodafone Idea
