Vodafone agrees to IPO by its Indian joint venture

Joint venture partner Essar says it wants to arrive at a true market value of its stake
  • (IDG News Service)
  • — 24 January, 2011 19:07

Vodafone has given the green light to Indian joint venture partner Essar Group to conduct an IPO (initial public offering) of Vodafone Essar if desired.

"We have no objection if Essar wishes to IPO its stake", Vodafone said in a statement on Sunday. An Essar spokesman declined to comment on the statement, which came as the two companies battle over the valuation of Essar’s stake in the joint venture.

Vodafone bought a 67 percent stake in Vodafone Essar in 2007 from Hutchison Telecommunications International. Essar holds the remaining 33 percent, of which one third is held by its Essar Telecommunications Holdings (ETHPL) unit.

Under an agreement between Vodafone and Essar that was signed at the time, Essar has an option to sell its 33 percent shareholding in Vodafone Essar to Vodafone for US$5 billion, or an option to sell between $1 billion and $5 billion worth of Vodafone Essar shares to Vodafone at an independently appraised fair market trading value.

Essar has until May to exercise the option.

The British mobile operator is trying to prevent Essar from merging Essar Telecommunications Holdings, the company that holds part of the joint venture stake, with listed company India Securities Ltd (ISL), as it could artificially increase the price Vodafone may have to pay to buy out Essar’s stake in the joint venture.

Essar said on Friday that it had taken the merger decision to determine the true market value of its stake in Vodafone Essar, as Vodafone had blocked an IPO of Vodafone Essar last year.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Topics: telephony, business issues, Essar Group, Mergers / acquisitions, telecommunication, Vodafone Group, investments, restructuring, Vodafone Essar
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?