Vodafone Idea Ltd said the Indian government would own nearly 36 percent of the country’s third-largest wireless phone operator after its board approved the conversion of dues into equity.
The unprofitable wireless carrier said in a stock exchange filing that it would result in dilution for all of the company’s existing shareholders, including the founders. Vodafone Group Plc will hold about 28.5% of the company and Aditya Birla Group will hold about 17.8% of the company.
The rescue plan is crucial for Vodafone Idea, a joint venture between Vodafone Group and billionaire Kumar Mangalam Birla’s conglomerate that has been losing customers to bigger rivals. After Reliance Jio Infocomm Ltd. sp, its financial situation deteriorates
Complete News Source : Business Standard
