In February, Vodafone won a bidding war to take a controlling stake in Hutchison Essar after it paid roughly $18.8bn in total for the 67% stake held by Hutchison Telecommunications International, the telecoms arm of Hong Kong conglomerate Hutchison Whampoa.
The deal had been expected to close on April 2, but the Newbury, UK-based operator has been waiting for two months for the Indian authorities to sign off on the deal. This is because Indian law only allows a foreign investor to own a maximum of 74% in a local company.
Vodafone now says it will control Hutch Essar and will pay $10.9bn in cash to HTIL, reflecting retention and closing adjustments agreed between Vodafone and HTIL.
I am delighted that, having secured all the necessary regulatory approvals, we are now able to complete this important transaction and move onto the process of integration, said Vodafone chief executive Arun Sarin. India is a tremendously exciting fast-moving market and I am confident that the Hutch Essar business will make a major contribution to the Vodafone Group over the coming years.
