Hutch-Vodafone Deal Approved By FIPB; Minority Stake Can Be Sold Only To Indian Residents
By Nikhil Pahwa - Fri 27 Apr 2007 10:15 AM PST
Can’t say this was unexpected, but after a few weeks of putting up a show of a fight on the grounds of foreign direct investment in the Hutch exceeding the stipulated 74 percent limit, the Foreign Investment Promotion Board (FIPB) has approved the $11.1 billion acquisition of Hutchison Essar Ltd by Vodafone, reports the Hindustan Times. There is, however, an interesting condition that has been laid down by the FIPB: minority stakeholders - Max group Chairman Analjit Singh, Hutch-Essar MD Asim Ghosh and financial institution IDFC may only sell their stake to Indian residents. Voda’s acquisition of Hutch had been deferred on thrice.
Posted in: Mergers & Acquisitions, Policy
