UK-based Vodafone Plc had filed a petition against Essar’s proposal to merge Essar Telecommunications Holdings (ETHPL), which has 11 per cent stake in Vodafone-Essar, with another Essar group’s listed entity, India Securities, to find the fair market value of its stake in the joint venture.
To this, the Madras High Court has stated that the foreign firm Vodafone has no locus standi to oppose the amalgamation of ETHPL with India Securities.
According to the Judge, the objection of the petitioner (Essar in this case) with regard to locus standi of Vodafone International to file objection has been upheld. And “Since the scheme of amalgamation is expected to being beneficial to both the transferor (ETHPL) and Transferee companies (India Securities), its shareholders and its creditors, these company petitions (seeking to amalgamate the companies) are ordered,” stated the judge said, delivering judgment on petitions filed by Essar.
The Court has also rejected the objection made by the Income Tax Department of India against the merger proposal.
