The Essar Group has restructured its 33 per cent shareholding in Vodafone Essar in order to raise $1.2 billion for domestic expan sion plans.

The Essar Group has restructured its 33 per cent shareholding in Vodafone Essar in order to raise $1.2 billion for domestic expansion plans. As part of the restructuring process, the group has transferred a 10.97 per cent stake in Vodafone Essar held by its telecom arm Essar Teleholdings to a newly created firm, 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, which was held through two Mauritian entities, Essar Telecom Investments (15.85 per cent) and Essar Communications (6.19 per cent), to raise $3.6 billion.