Vodafone buys out Essar in India for $5bn
Friday 01 April 2011
Vodafone and Essar have settled a dispute over its Indian joint venture with the UK mobile giant agreeing to buy out its partner in a deal worth $5bn (£3bn).
In a statement released yesterday, Vodafone said it had exercised its put option to buy out Essar's 33 per cent stake in the business. The deal will complete before November.
This marks the end of a rocky alliance between the two companies. Vodafone Essar is the second largest mobile operator in India by revenues.
The UK company paid $10bn when it bought 67 per cent of the group from Hutchison in 2007.
In January, simmering tensions over the so called "put option" broke out into open warfare as Essar accused Vodafone of trying to force it out of the venture at an "artificially" low price. At the time of the deal, the put option was agreed to sell the entire stake to Vodafone for $5bn or sell a smaller stake at an independent valuation.
Through a complex transaction Essar wanted to combine a third of its 33 per cent holding with a publicly listed Indian company to establish a value for its stake on the market.
Vodafone tried to block the move as it feared it would artificially inflate the price and Essar took the matter to the Madras High Court.
Following yesterday's deal, Vodafone said it would sell its stake down to 74 per cent to comply with Indian rules over foreign ownership.
- 1 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Oil tanker with $100 million cargo goes missing off Texas coast
- 3 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 4 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
Highly Attractive Salary: Austen Lloyd: BRISTOL - This is a very unusual law c...
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...