Vodafone Expects Bharti Dividend Within Next Couple Of Yrs

LONDON -(Dow Jones)- Vodafone Group PLC Friday said it expects to reap dividends from its 10% stake in Bharti Tele-Ventures Ltd. once the company hits cashflow breakeven.

Vodafone Chief Executive Arun Sarin said on a conference call he expects dividend payments "in the next couple of years."

Sarin said that after Bharti, India's largest mobile operator, achieves positive free cashflow, Vodafone will begin to receive dividend payments.

Sarin said Vodafone is keen to increase its stake in the Indian company. "We may be larger investors if we can buy shares at a reasonable price," he said. He said the 10% stake it purchased for GBP820 million earlier Friday was the only stake available to buy.

Vodafone has pre-emptive rights to purchase shares that come up for sale. Singapore Telecommunications Ltd. owns a stake of around 30% in Bharti, with the majority held by the founders of the company.

Turning his attention to Turkey, Sarin said Vodafone is likely to bid for mobile telecom company Telsim which is being auctioned by the Turkish government. Vodafone has pre-qualified to bid for the company and looks set to make a formal bid before the Dec. 5 deadline.

"Chances are we will take a bid to Turkey," Sarin said, adding that he expects competition from Middle Eastern telecoms companies for the asset.

Company Web site: http://www.vodafone.com

-By Nic Fildes, Dow Jones Newswires; 44-20-78429264; nicolas.fildes@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 28th October 2005