Vodafone gives nod to Essar’s IPO: Report
British telecom firm Vodafone has reportedly given the go-ahead for Essar’s initial public offer of the latter’s stake in Vodafone Essar. The company is controlled by Vodafone Group, which owns 52% of the joint venture and the rest 33% is owned by Indian conglomerate Essar Group. Vodafone paid $11.1 billion in 2007 for a 67 percent stake in the firm.
As per the agreement, Essar will have the option to sell its entire 33 percent stake for $5 billion by May 2011 or part of it at a market-determined price. Vodafone has an agreement with Essar that gives it first option to buy out the latter's stake if some or all of the holding is put up for sale.
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