Indian conglomerate Essar Group is in discussions with its joint venture partner, Vodafone, over a possible IPO of its telecoms venture in India. The Calcutta Times said that a potential IPO would involve the listing of the venture, Vodafone Essar, and…
Indian conglomerate Essar Group is in discussions with its joint venture partner, Vodafone, over a possible IPO of its telecoms venture in India.
The Calcutta Times said that a potential IPO would involve the listing of the venture, Vodafone Essar, and would need both Vodafone’s and Essar’s approval. Essar owns 33% of Vodafone Essar, India’s third largest mobile operator.
Vodafone bought a controlling stake in Hutchison Whampoa’s mobile business in India in 2007. The terms of the deal gave Essar the option to sell its stake in the telecom venture to Vodafone for US$5bn between the third and fourth years of the deal’s completion.
Alternatively, Essar could sell shares worth between US$1bn and US$5bn in the company to Vodafone at an independent valuation. The option for the sale opened in May and runs for 12 months.
In April, Essar raised £1.27bn (US$1.93bn) through a London IPO of its energy and power businesses and in February sold its telecoms tower unit to American Tower Corp for about $432m.
In November 2009, Essar bought a majority stake in Dhabi Group’s telecommunication businesses in Uganda and Congo.
Neither Essar nor Vodafone were available for comment.
