Vodafone is buying out Essar Group’s 33pc stake in the Indian mobile phone network Vodafone Essar in a deal worth US$5bn in cash, Vodafone announced today.
The buyout will result in Vodafone owning a 75pc share in the network, which is the third-biggest mobile phone operator in India. In January 2011, the network had more than 127m subscribers.
It comes about after Essar exercised its put option over 22pc of Vodafone Essar. Vodafone subsequently exercised its call option to purchase the remaining 11pc share owned by the Essar Group.
Vodafone said it is expecting the deal to be completed no later than November 2011.
Article courtesy of Businessandleadership.com