Agreement Reached For Vodafone Essar

This is being reported in many places as a done deal… Bloomberg says that Vodafone CEO Arun Sarin is optimistic that his visit with Essar in India today will result in an agreement for Essar to remain in partnership with Vodafone and for the mobile company to be renamed Vodafone Essar (from the current Hutchison Essar). Essar had previously said it had first dibs on Hutchison’s stake in the compnay. Although the deal gives Essar Group the option to sell its stake in the telco to Vodafone at the same price as Vodafone paid Hutchison within four years Essar said it has no intention to exit the mobile games market. If it does decide to sell Vodafone will have to look for another Indian partner to satisfy local ownership laws. The 67 percent stake in question “consists of a 52 percent stake to be owned directly by Vodafone, and 15 percent held by Indian businessman Analjit Singh and Hutchison Essar Managing Director Asim Ghosh”, indicating the latter is likely to remain as managing director.
Essar Group Vice Chairman Ravi Ruia is likely to be appointed Chairman of Vodafone Essar board, while Sarin would be named Vice Chairman, reports the Economic Times of India.
Related stories:
Hutchison Agrees To Vodafone’s Indian Offer
Essar May Challenge Vodafone’s Hutchison Bid
@ 3GSM: Vodafone eyes India mobile growth

Comments have been disabled for this post