Vodafone moves FIPB on Hutch buy

Guidelines under Press Note 1 make it mandatory for a foreign investor to submit a No Objection Certificate (NOC) from its existing Indian partner if permission is sought for another venture in the same sector.

Vodafone has submitted its board resolution and the NOC from Bharti, sources said, adding this should be sufficient to get the FIPB nod.

Since Bharti has already endorsed the acquisition, the British major believes it is just filling into the Hutch’s shoes in India and is complying with local laws.

FIPB is yet take up the Vodafone issue and still to decide a date on that.

The board has to take note of HTIL’s sale of its stake to Vodafone, as also the continuation of Asim Ghosh and Analjit Singh, who have 15 per cent stake in the venture — which effectively gives the UK company 67 per cent control over Hutch-Essar. Besides, FIPB would also take note of Bharti’s approval to Vodafone’s acquisition.

Vodafone is likely to have a smooth sailing in getting government approval.

“We will endorse the proposal when it comes to us from FIPB for departmental view as the transaction falls well under the guidelines,” a senior official of the Department of Telecom had earlier said.

Pending shareholders vote on March 9 and the approval of FIPB, the deal could close on April first week.