LONDON (AFX) - Vodafone Group PLC said it has agreed to buy a 67 pct interest in Hutchison Essar Ltd for 11.1 bln usd plus 2.0 bln in debt, valuing the company at 18.8 bln usd.
In a statement, Vodafone said it will acquire the stake through its subsidiary Vodafone International Holdings BC, and finance the deal through debt and existing cash reserves.
The company said it expects pro forma net debt of around 22.8-23.3 bln stg at March 31 as a result of the deal.
Vodafone said it will also make an offer to buy out Essar Group's 33 pct stake in Hutchison Essar at the equivalent price per share.
Vodafone said the deal will increase its revenue and EBITDA CAGR by around one and a half percentage points over the three year period to March 2010, and be neutral to adjusted earnings per share in the first year post acquisition.
The acquisition is expected to close in the second quarter, pending regulatory approval in India.
The company said it has also signed a memorandum of understanding with Bharti Airtel Ltd on infrastructure sharing, and that it has granted an option to a Bharti group company to buy its 5.6 pct interest in Bharti for 1.6 bln usd. newsdesk@afxnews.com cml COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited