FIPB gives the nod to Vodafone Essar stake sale; Vodafone Group to boost holding

24 Nov 2009

India’s Foreign Investment Promotion Board (FIPB) has announced that it will allow Max India chairman Analjit Singh and former Vodafone Essar CEO Asim Ghosh to sell their respective stakes in Vodafone Essar to UK-based Vodafone Group, the Financial Express reports. Following the sale Vodafone Group will increase its stake in the Indian mobile network operator to 58%, up 6% against its current 52% holding, but still well below the 74% limit in place for foreign investors. Presently Singh and Ghosh hold 7.58% and 4.68% stakes respectively in Vodafone Essar through Telecom Investments India (TII), which itself is owned by a number of holding companies. Under the terms of the deal both individuals will dilute their stakes by around 49% each in those holding companies, and therefore in TII, and as a result Singh’s post-sale stake in Vodafone Essar will fall to 3.87% and Ghosh’s to 2.39%.

India, Vodafone Group, Vodafone India