Vodafone to Delay Indian Stock Market Listing Until After Tax Settlement
Published on: 3rd Jun 2014
Note -- this news article is more than a year old.
Vodafone is now not expected to launch its long planned Indian stock market listing until after the long running tax dispute is settled.
Vodafone India has been expected to list its shares locally for some time, and its recent decision to buy out the other minority shareholders was also seen in part as a tidying up exercise ahead of the listing.
However, the ongoing uncertainty about the tax demand, while sizeable is not materially damaging to the company, but could worry investors and dampen the appetite for the shares.
Settling the tax dispute, whichever way it goes removes that last concern, and the boost to the expected shareprice could itself cover the tax demand if Vodafone agrees to make some form of payment.
In a recent interview, Vodafone India chief executive Marten Pieters told the Economic Times that the Group's CEO, Vittorio Colao "wants the tax case to be resolved before we can process the IPO, and from his perspective I can imagine he wants a good feeling on the case."
A local listing would also make it easier for the company to buy smaller local rivals, subject to the ongoing review on mergers being favourable.
On the web: Economic Times