May 10, 2007 12:00:33 am
Vodafone is all set to enter the Indian market. The UK-based telco today announced that it has completed the acquisition of controlling stake in Hutchison-Essar paying $10.9 billion as against $11.8 billion announced earlier. The differential amount of $0.9 billion includes provisions for the previously announced settlement agreement with the Essar Group, a retention of $3.52 billion by Vodafone in consideration of their waiving off certain potential claims against the company, the receipt of interest from Vodafone and transaction cost and expenses.
Vodafone CEO Arun Sarin had earlier said they would work towards becoming the leading mobile player in India. The estimated pre-tax gain from the sale is expected to be approximately $9 billion to Hutchison Telecom International Ltd, which sold its entire stake to the British player in India’s fourth largest mobile operator Hutchison-Essar, HTIL said in a statement.
Commenting on completion of the transaction, Sarin said, “I am delighted that, having secured all the necessary regulatory approvals, we are now able to complete this important transaction and move onto the process of integration. “India is a tremendously exciting, fast moving market and I am confident that the Hutch Essar business will make a major contribution to the Vodafone Group over the coming years,” said Sarin.
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