A Government panel has asked the Ministry of Home Affairs and the Department of Telecommunications (DoT) for comments on UK-based Vodafone’s request to purchase 5.48 per cent stake in Vodafone-Essar for about Rs 27 billion. Until then, the panel will not take any decision on the matter.
Mauritius-based Prime Metals, an indirect subsidiary of Vodafone International, had sent an application to the Foreign Investment Promotion Board (FIPB) for approval to purchase about 5.48 per cent stake in Vodafone-Essar.
Prime Metals already holds about 1.53 per cent stake in Vodafone-Essar. If the deal materialises, foreign stake in the operator will increase to over 69 per cent from the present 64.38 per cent. Since foreign stake in Vodafone-Essar is more than 49 per cent, FIPB?s approval is necessary.
