Vancouver, B.C., Canada (March 31, 2011) – Clearlease.com Reports Vodafone Group plc (LSE: VOD, NASDAQ: VOD) has agreed to pay $5 billion cash to buy out the Essar Group’s stake in their Indian joint venture.
The buyout of Essar’s 33 per cent stake has been long expected and brings to an end what by many accounts has been an increasingly sour relationship between the partners.
The final settlement is expected by November and the payment is already reflected in its balance sheet, Vodafone said in a statement Thursday.
The buyout will reduce Essar’s stake to zero and raise Vodafone’s from 42 per cent to just over 75 per cent, putting it in violation of India’s foreign direct investment laws, which cap foreign ownership of telecom companies at 74 per cent.
After Essar’s exit, the remaining 24.6 per cent of Vodafone Essar Ltd. would be held by entities controlled by Vodafone’s other Indian business partners: Analjit Singh, chairman of Max India Ltd., which has interests in health care and insurance; and India’s Infrastructure Development Finance Company Ltd.
“We will remain within FDI thresholds,” said Ben Padovan, a Vodafone spokesman in London. “An IPO may be considered in the future.”
Essar, which also has a 1.5 per cent stake in India’s Loop Telecom, declined comment Thursday.
Vinod Sharma, head of private broking and wealth management at Mumbai’s HDFC Securities, said the transaction would allow Vodafone to tighten its management control and give Essar cash to deploy across its business empire.
“It will improve the managerial efficiency,” he said. “Essar can use that money elsewhere for other ventures where they can call the shots.”
Vodafone entered the Indian market in 2007, paying $11 billion for a 67 per cent stake in Hutchison Essar.
Since then the British company has been frustrated by high licensing fees, shifting regulations, an unanticipated $2.6 billion tax bill and a sudden proliferation of competitors that sparked a price war in India’s fast growing mobile market.
Last May, Vodafone wrote down the value of its Indian business by more than 25 per cent, or 2.3 billion pounds ($3.5 billion).
In the six months through September 2010, Vodafone’s customers in India grew 42.7 per cent and service revenues from India accounted for 8.8 per cent of the group’s total during the December quarter, according to company reports.
Today Vodafone Essar Ltd. is India’s third largest mobile operator by subscribers, with a 16.5 per cent share of India’s 752.2 million wireless subscribers as of December, according to India’s telecom regulator.
Vodafone shares were down 0.75 pct at 178.5 pence in late morning trading on the London Stock Exchange.
DLC Clearlease currently has the following employment opportunities available: http://clearlease.com/Career-Opportunities.html
About DLC Clearlease
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouver, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers, DLC Clearlease is a free service that can qualify you for an automobile or equipment lease finance. You save time and effort by giving DLC Clearlease.com your information just once; DLC Clearlease has partnered with over 100 lenders to offer you the best rates and service, comparable to none. We offer a simple application process available at http://clearlease.com/How-to-Apply.html . You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Pidgeon, Editor
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Vancouver, B.C., Canada (March 31, 2011) – Clearlease.com Reports Vodafone Group plc (LSE: VOD, NASDAQ: VOD) has agreed to pay $5 billion cash to buy out the Essar Group’s stake in their Indian joint venture.
The buyout of Essar’s 33 per cent stake has been long expected and brings to an end what by many accounts has been an increasingly sour relationship between the partners.
The final settlement is expected by November and the payment is already reflected in its balance sheet, Vodafone said in a statement Thursday.
The buyout will reduce Essar’s stake to zero and raise Vodafone’s from 42 per cent to just over 75 per cent, putting it in violation of India’s foreign direct investment laws, which cap foreign ownership of telecom companies at 74 per cent.
After Essar’s exit, the remaining 24.6 per cent of Vodafone Essar Ltd. would be held by entities controlled by Vodafone’s other Indian business partners: Analjit Singh, chairman of Max India Ltd., which has interests in health care and insurance; and India’s Infrastructure Development Finance Company Ltd.
“We will remain within FDI thresholds,” said Ben Padovan, a Vodafone spokesman in London. “An IPO may be considered in the future.”
Essar, which also has a 1.5 per cent stake in India’s Loop Telecom, declined comment Thursday.
Vinod Sharma, head of private broking and wealth management at Mumbai’s HDFC Securities, said the transaction would allow Vodafone to tighten its management control and give Essar cash to deploy across its business empire.
“It will improve the managerial efficiency,” he said. “Essar can use that money elsewhere for other ventures where they can call the shots.”
Vodafone entered the Indian market in 2007, paying $11 billion for a 67 per cent stake in Hutchison Essar.
Since then the British company has been frustrated by high licensing fees, shifting regulations, an unanticipated $2.6 billion tax bill and a sudden proliferation of competitors that sparked a price war in India’s fast growing mobile market.
Last May, Vodafone wrote down the value of its Indian business by more than 25 per cent, or 2.3 billion pounds ($3.5 billion).
In the six months through September 2010, Vodafone’s customers in India grew 42.7 per cent and service revenues from India accounted for 8.8 per cent of the group’s total during the December quarter, according to company reports.
Today Vodafone Essar Ltd. is India’s third largest mobile operator by subscribers, with a 16.5 per cent share of India’s 752.2 million wireless subscribers as of December, according to India’s telecom regulator.
Vodafone shares were down 0.75 pct at 178.5 pence in late morning trading on the London Stock Exchange.
DLC Clearlease currently has the following employment opportunities available: http://clearlease.com/Career-Opportunities.html
About DLC Clearlease
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouver, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers, DLC Clearlease is a free service that can qualify you for an automobile or equipment lease finance. You save time and effort by giving DLC Clearlease.com your information just once; DLC Clearlease has partnered with over 100 lenders to offer you the best rates and service, comparable to none. We offer a simple application process available at http://clearlease.com/How-to-Apply.html . You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Pidgeon, Editor
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Vancouver, B.C., Canada (March 31, 2011) – Clearlease.com Reports Vodafone Group plc (LSE: VOD, NASDAQ: VOD) has agreed to pay $5 billion cash to buy out the Essar Group’s stake in their Indian joint venture.
The buyout of Essar’s 33 per cent stake has been long expected and brings to an end what by many accounts has been an increasingly sour relationship between the partners.
The final settlement is expected by November and the payment is already reflected in its balance sheet, Vodafone said in a statement Thursday.
The buyout will reduce Essar’s stake to zero and raise Vodafone’s from 42 per cent to just over 75 per cent, putting it in violation of India’s foreign direct investment laws, which cap foreign ownership of telecom companies at 74 per cent.
After Essar’s exit, the remaining 24.6 per cent of Vodafone Essar Ltd. would be held by entities controlled by Vodafone’s other Indian business partners: Analjit Singh, chairman of Max India Ltd., which has interests in health care and insurance; and India’s Infrastructure Development Finance Company Ltd.
“We will remain within FDI thresholds,” said Ben Padovan, a Vodafone spokesman in London. “An IPO may be considered in the future.”
Essar, which also has a 1.5 per cent stake in India’s Loop Telecom, declined comment Thursday.
Vinod Sharma, head of private broking and wealth management at Mumbai’s HDFC Securities, said the transaction would allow Vodafone to tighten its management control and give Essar cash to deploy across its business empire.
“It will improve the managerial efficiency,” he said. “Essar can use that money elsewhere for other ventures where they can call the shots.”
Vodafone entered the Indian market in 2007, paying $11 billion for a 67 per cent stake in Hutchison Essar.
Since then the British company has been frustrated by high licensing fees, shifting regulations, an unanticipated $2.6 billion tax bill and a sudden proliferation of competitors that sparked a price war in India’s fast growing mobile market.
Last May, Vodafone wrote down the value of its Indian business by more than 25 per cent, or 2.3 billion pounds ($3.5 billion).
In the six months through September 2010, Vodafone’s customers in India grew 42.7 per cent and service revenues from India accounted for 8.8 per cent of the group’s total during the December quarter, according to company reports.
Today Vodafone Essar Ltd. is India’s third largest mobile operator by subscribers, with a 16.5 per cent share of India’s 752.2 million wireless subscribers as of December, according to India’s telecom regulator.
Vodafone shares were down 0.75 pct at 178.5 pence in late morning trading on the London Stock Exchange.
DLC Clearlease currently has the following employment opportunities available: http://clearlease.com/Career-Opportunities.html
About DLC Clearlease
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouver, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers, DLC Clearlease is a free service that can qualify you for an automobile or equipment lease finance. You save time and effort by giving DLC Clearlease.com your information just once; DLC Clearlease has partnered with over 100 lenders to offer you the best rates and service, comparable to none. We offer a simple application process available at http://clearlease.com/How-to-Apply.html . You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Pidgeon, Editor
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###