British telecom giant Vodafone Group PLC plans to invest around €1 billion into its Indian operations, the company said in its most recent annual report.
The additional funds should boost the agreed merger between Vodafone India and Idea Cellular Ltd., currently in the final stages of receiving government approval.
To raise more funds for the new combination, Idea is in the process of selling its 11.15% stake in Indus Towers Ltd. to Bharti Infratel Ltd., which should generate approximately €800 million.
Post-merger, Vodafone will hold a stake of not more than 47.5% in the joint venture, according to Indian newspaper The Economic Times.
"We have taken a number of steps during the year to strengthen the financial position of the future joint venture, raising approximately €3.5 billion in incremental financing for the business," Vodafone Chief Financial Officer Nick Read wrote in the report.
In April, Bharti Infratel announced its intention to merge its operations with Indus Towers to create a $14.6 billion telecom infrastructure giant.
