Remember, Yahoo India had recently got Foreign Investment Promotion Board’s (FIPB is a body under the Ministry of Commerce which approves foreign direct investment proposals) approval to acquire a internet telephony company in India. Here are some more details on this. Yahoo Inc is acquiring 100 per cent stake from the resident shareholders in an existing Indian company, Yahoo Internet Communications India. The acquisition will be done through Yahoo’s Dutch company, Overture Services Europe. Yahoo will invest Rs 2 crore ($450K) initially in the venture.
But what is most important is Yahoo has been given the approval on the condition that it will divest 26 per cent stake in the new venture to domestic investors (Indian public). According to the rules, this has to be done over the next five years. Indian government has a domestic divestment clause for MNCs (who are already listed abroad).
Related:
-Yahoo India Gets FIPB Clearance To Acquire An Internet Telephony Company: Report
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