Proximus to Acquire India’s Route Mobile for $721 Million
- Proximus to make open offer for further 26% stake in Route
- Route founders to reinvest $336 million in Proximus Unit
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Belgian telecommunications operator Proximus Group has agreed to buy a majority stake in Indian cloud communication service provider Route Mobile Ltd. for 59.22 billion rupees ($721 million) to gain a foothold into high-growth markets.
The Brussels-based company will buy about 58% stake in Route Mobile at 1,626.40 rupees ($19.8) a share through its unit Proximus Opal, and will make a tender offer for an additional 26% stake at the same price to comply with Indian rules. Some of the founding shareholders of Route Mobile will reinvest $336 million in Proximus Opal for as much as 14.5% stake, according to a statement to stock exchanges.