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Home  » Business » Vodafone, Essar resolve issues, to sign deal

Vodafone, Essar resolve issues, to sign deal

Source: PTI
March 14, 2007 17:48 IST
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Arun Sarin, CEO of Vodafone which successfully bid for majority stake in domestic mobile firm Hutch-Essar, will visit India on Thursday to ink a deal with Indian partner Essar on management and organisational issues.

Nearly a month after the UK firm clinched a deal for acquiring Hong Kong-based Hutchison Telecom International's controlling stake in HEL, Sarin will announce the terms and conditions of the partnership with Ruias-promoted Essar, which holds 33 per cent stake in the joint venture.

The two firms have also agreed to rename HEL as Vodafone Essar, which would start selling its products and services under the Vodafone brand in due course.

The partnership would be announced at a joint press conference by Sarin and Essar group vice chairman Ravi Ruia, sources close to the development said. However, it was not confirmed whether the deal would be announced in the national capital or Mumbai, where HEL is headquartered.

Under the terms of partnership believed to have been agreed by the two firms, Vodafone would have operational control of Vodafone Essar and Ruias would have rights, such as board representation, in accordance with their 33 per cent equity.

Ravi Ruia is likely to be appointed chairman of Vodafone Essar board, while Sarin would be named vice chairman.

Following the completion of HTIL's stake sale, which is expected in the next few weeks, Vodafone would get a controlling stake of 51.57 per cent in the venture, while Essar Group would continue to retain its 33.02 per cent.

HTIL's existing Indian partners Asim Ghosh, Analjit Singh and Infrastructure Development Finance Company Ltd have agreed to remain minority partners with their collective 15.03 per cent stake.

The race for Hutch-Essar: Complete coverage

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