Vodafone Acquires Dominant Share in Hutchison Essar
March 16, 2007
Vodafone and Essar, the Indian partner in Hutchison Essar, have settled on a solution to the future operations of the Indian mobile operator. The joint venture is to be renamed Vodafone Essar, in which Vodafone will have a controlling stake of 67%, to be acquired from Hutchison Telecommunications International in a few weeks, pending approval from India's Foreign Investment Promotion Board. The remaining stake goes to Essar, which will have proportionate board representation and certain liquidity rights, including the option to sell the entirety or parts of its stake to Vodafone for up to US$5 billion in three to four years following the completion of the transaction. Vodafone Essar's products and services will be sold under the Vodafone brand.