Vodafone pays $1.9 billion for buying Essar stake in JV - Printable Version
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Vodafone pays $1.9 billion for buying Essar stake in JV - SRK - 06-03-2011 10:13 AM
New Delhi, Jun 1 (PTI) UK-based Vodafone today paid USD 1.9 billion to Essar as first tranche for buying 22 per cent stake, held by offshore entities belonging to Ruias in their telecom joint venture Vodafone-Essar.
The 22.03 per cent stake, held in the JV by offshore entities of the Ruias-led Essar, is valued at USD 3.8 billion.
“We have made the first tranche of payment to Essar,” a Vodafone spokesperson said.
Of Essar”s 33 per cent stake in the JV, 22.03 per cent is owned by the company”s overseas entities, while the remaining 10.97 per cent is held by the group”s Indian firms and is valued at USD 1.2 billion.
According to sources, Vodafone has now paid USD 1.9 billion to Essar and the remaining USD 1.9 billion would be paid in November.
To sell the remaining 10.97 per cent in the telecom joint venture, Essar has approached the Reserve Bank ofIndia (RBI) for approval.
When contacted, Essar spokesperson declined to comment.