Vodafone has started cashing out of Bharti Airtel. The UK telco has sold 5.6 per cent stake in Bharti back to its promoters Mittals for $1.6 billion. Following Vodafone’s successful bidding of 67 per cent stake in Hutchison Essar, the company had to offload its stake in Bharti. Vodafone still holds 4.4 per cent stake in Bharti which it plans to retain as a financial investor.
According to investment banking sources, Vodafone has sold the stake at a 12 per cent discount to Friday’s closing price of Rs 752 of Bharti Airtel. That’s a gain of $160 million for Bharti promoters Sunil Mittal and family.
In October 2005, Vodafone had picked picked up 10 per cent stake in Bharti Airtel for $1.5 billion. The sale price shows that Vodafone has gained almost 100 per cent on its investment in just 17 months.
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