Reliance Mutual Fund new issue will open for subscription on 11th April
Tata Mutual Fund new issue closes on 6th April
Tata Mutual Fund has launched Tata Fixed Maturity Plan Series 30 Scheme C, a close-ended income scheme.
Essar to sell entire 33% in the Indian telecom company that will give Vodafone a 75% control
New Delhi: Vodafone, the world’s largest mobile phone operator by revenue, today said it has exercised its option to acquire Essar’s stake in their joint venture for $5 billion.
“Vodafone Group announces that the Essar Group has exercised its underwritten put option over 22% of Vodafone Essar Limited (VEL). Following the exercise by the Essar Group of its put option, Vodafone has exercised its call option over the remaining 11% of VEL owned by the Essar Group, resulting in a total cash payment of $5 billion,” Vodafone stated.
Essar has a 33% stake in the joint venture company and with this buy Vodafone will have a direct holding of 75% in the Indian telecom company. Essar will exit completely from the joint venture. The company also said that a final settlement is expected to be completed by November 2011. Essar has not commented on the deal, reports PTI.
Vodafone paid $11.1 billion in 2007 for control of the phone company in what is still the largest foreign direct investment to have been completed in India. But the UK-based telecom operator continued to have a difficult relationship with Essar over the company should hold its stake. It also faced challenges from the high spectrum costs to an ongoing tax dispute.