Ruias fall in line, answer Vodafone call
The long-drawn Hutchison Essar saga appears to have finally reached its end.
By TNN |
NEW DELHI: The long-drawn Hutchison Essar saga appears to have finally reached its end. Many twists and turns later, a happy ending was played out on Thursday amidst broad smiles and handshakes at a press conference, with UK-based cellular major Vodafone formally announcing that it had reached an agreement with the Essar Group for management and operational control of India’s fourth-largest telecom company. Hutch will now be renamed Vodafone Essar.
The agreement provides the Essar Group with the exit option to sell its 33% stake in HEL for $5 billion between the third and fourth anniversaries of the deal’s completion. Alternatively, Essar can also sell shares worth between $1 billion and $5 billion in the JV company to Vodafone at an independently-appraised fair market trading value. In addition, Hutchison Telecom International announced that it is paying $415 million to the Essar Group for its cooperation in completing the deal.
The partners have agreed that Hutchison Essar will be renamed Vodafone Essar, and in due course, the business will market its products and services under the Vodafone name. The rebranded entity will have a 12-member board with Vodafone appointing seven directors, including the joint venture’s MD Asim Ghosh and Max India chairman Analjit Singh.
The two, between them, hold about 12.3% in the company. Essar will have four members on the board, in addition to Ravi Ruia, who has been nominated by Vodafone as chairman.
The agreement provides the Essar Group with the exit option to sell its 33% stake in HEL for $5 billion between the third and fourth anniversaries of the deal’s completion. Alternatively, Essar can also sell shares worth between $1 billion and $5 billion in the JV company to Vodafone at an independently-appraised fair market trading value. In addition, Hutchison Telecom International announced that it is paying $415 million to the Essar Group for its cooperation in completing the deal.
The partners have agreed that Hutchison Essar will be renamed Vodafone Essar, and in due course, the business will market its products and services under the Vodafone name. The rebranded entity will have a 12-member board with Vodafone appointing seven directors, including the joint venture’s MD Asim Ghosh and Max India chairman Analjit Singh.
The two, between them, hold about 12.3% in the company. Essar will have four members on the board, in addition to Ravi Ruia, who has been nominated by Vodafone as chairman.
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