Softbank planning to acquire stake in the proposed Vodafone-Idea combined entity

Japan-based Softbank is reportedly planning to acquire a 15-20 per cent stake in the merged entity proposed to be formed by Vodafone India and Idea Cellular. The sale of shares to a new investor will enable Vodafone to reduce its shareholding in the merged entity to less than 50 per cent, thereby allowing it to deconsolidate its Indian operations from its books. Further, a new investor will also help in bridging the gap between the shareholding pattern of Vodafone India, Idea Cellular as well as the Aditya Birla Group in the merged entity.