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Vodafone Essar drops IPO plans
27 August 2010
The Essar group in India has dropped plans to sell part of its 33% stake in Vodafone Essar, say reports
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Vodafone Essar
Hutchison
Reports from India say that Vodafone Essar has abandoned its plans for a share flotation. The Essar Group had invited banks to advise it on a public offering of shares sometime in the next 12 months, but pulled the deal before bankers were appointed.
Essar, which owns 33% of the mobile phone venture, had been looking to sell all or part of its stake in an IPO. The Vodafone group owns the remaining 67% of Vodafone Essar.
Vodafone bought a 67% stake in Hutchison Essar for $11.2 billion from Hong Kong’s Hutchison Telecommunications International. Hutchison Essar was then renamed Vodafone Essar.
Vodafone has an agreement with Essar that gives it first option to buy out the Indian company’s stake if some or all of the holding is put up for sale. GTB