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Vodafone Essar may sell stake in IPO
20 July 2010
Industrial group Essar is considering selling part of its stake in Vodafone India through an IPO or the whole 33% to Vodafone
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Essar
Vodafone
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Vodafone Group’s Indian partner, Essar Group, is considering selling a stake in their Indian venture in an initial public offering. Essar — an oil, steel and energy group — has appointed banks to advise on options including selling part of its 33% stake in Vodafone Essar.
The company, which may sell its 10% stake within the next year, also has an option to sell its entire stake to Vodafone for $5 billion or it can sell a smaller stake at market trading value. Essar’s 10% stake is valued at nearly $855 million.
Essar holds 33% and Vodafone Group holds 67% of the mobile phone operator, which has more than 106 million customers across India.
Essar is planning to reduce its stake in the telecom venture in order to expand its steelmaking, power generation, oil refining, energy exploration and shipping businesses. GTB