The Essar Group has restructured its 33 per cent shareholding in Vodafone Essar to raise $1.2 billion for its domestic expansion plans. Under the initiative, the group has transferred 10.97 per cent stake in Vodafone Essar held by its telecom arm, Essar Teleholdings, to the newly formed ETHL Communications Holdings. ETHL, a wholly owned subsidiary of Essar Teleholdings, is likely to use this stake to raise funds for the Essar Group’s expansion plans. With this, the group has pledged its entire 33 per cent holding in Vodafone Essar. In 2007, it had pledged about 22 per cent stake held by its two Mauritius-based arms, Essar Telecom Investments (15.85 per cent) and Essar Communications (6.19 per cent), to raise $3.6 billion.
