Vodafone to pay 11.1-billion-dollars to Hutchison telecom

By Staff
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Google Oneindia News

New Delhi, Apr 6 (UNI) British telecom giant Vodafone has said that it would pay 11.1-billion-dollars to Hutchison Telecom for its direct and indirect control of 67 per cent equity which it had bagged recently.

Meanwhile, the FIPB is expected to discuss again the Vodafone's payment deals and other related matters next week.

FIPB is seeking details of ownership and lending of funds by Hutchison Telecom Internaional Ltd (HTIL) to Indian partners to ascertain whether Hutchison Essar Ltd (HEL), to be named as Vodafone-Essar, meets the existing FDI norms and regulations.

HEL Managing Director Asim Ghosh and Max Group Chairman Analjit Singh, who together hold 12.6 per cent stake in the venture, had informed the FIPB they were the actual owners of the stake.

The Newbury, England-based telecom giant will continue to consolidate the stake held by minority investors.

Asim Ghosh and Analjit Singh in its overseas account as was being done by HTIL.

"We have consistent advice on the company's holding structure and it is legal and compliant with Indian laws.

We will have a direct stake of 52 per cent. However, we will consolidate 67 per cent into our accounts," Vodafone Group head (corporate and financial media relations) Ben Padovan had said.

On the 11.1-billion-dollar consideration, Mr Padovan said it was for 67 per cent stake. "The 11.1 billion dollar was paid for a direct stake of 52 per cent in the business.'' he said.

The Vodafone official said that it will also be required to consolidate (into our accounts) the companies that we own (52 per cent) as well as those of our Indian partners (15 per cent), because the balance of risks and rewards pertaining to these companies will lie mainly with Vodafone.

"We are stepping into HTIL's place, a structure which has been in existence for over an year now.

We understand that as as a high-profile transaction, the Indian government is scrutinising it," the Vodafone official said.

Vodafone purchased Hutchison Telecommunications' 67 per cent stake in Hutchison Essar for 11.1 billion dollars (Rs 48,540 cr), which values the Hutch Essar at 18.8 billion dollars, including debt.

Vodafone already has partnerships towards these ends with the likes of YouTube (videos), MySpace (social networking), Google (search), Yahoo (Instant messaging) and eBay to name a few.

UNI

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