KUALA LUMPUR (Feb 1): Axiata Group Bhd's 20%-owned India associate, Idea Cellular Ltd, is initiating preliminary negotiation with UK-based Vodafone Group Plc for a merger of operations through a cashless deal. In a statement this Monday (Jan 30), Vodafone confirmed that it is in discussions with Aditya Birla Group about an all share merger of Vodafone India (excluding Vodafone's 42% stake in Indus Towers Ltd) and Idea. Aditya Birla owned a 23.26% stake in Idea and a 16% stake in Indus Towers as at Mar 31 last year. "Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India," the statement read. Vodafone added that there is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction.

Source: The Edge Markets February 01, 2017 10:52 UTC