Will honour Vodafone deal, says Essar Group

Will honour Vodafone deal, says Essar Group

 “Essar fully intends to honour all its rights and obligations under the various agreements with Vodafone and also expects Vodafone to do the same. This will be done in accordance with all applicable laws and regulatory approvals,” the company said in a statement.

The statement comes amid reports that Essar group may ask for US$700 million more for selling its 33 per cent holding in Vodafone Essar Ltd (VEL) to its British partner Vodafone Group Plc.

Essar said it continues “to be a shareholder in VEL with all its rights and obligations until the transaction is concluded, which is expected by the end of November”.

It has applied to the Reserve Bank of India seeking permission to transfer shares for US$1.2 billion in terms of the call option (11 per cent) exercised by Vodafone.

Last month, Vodafone said it would purchase Essar’s 33 per cent stake for US$5 billion by exercising put and call options.Reports said Essar may invoke a RBI resolution that stipulates a minimum value for Indian shares in privately-held companies.

When contacted, Vodafone spokesperson said, “We are aware of the RBI guidelines and for the current transaction, we comply with them.”

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