Vodafone Essar may soon join Reliance Communication, Bharti and Idea on the stock exchanges.
The shareholder's agreement states that if after three years, either shareholder wants the company to go public, the other will not block the move.
The agreement says, ‘After third anniversary of the effective date, either an Essar group shareholder or a Vodafone group shareholder will be entitled to require Hutch Essar to take all reasonable steps to effect an IPO. Such IPO to be effected on either NSE, BSE or any international stock exchange outside USA.’
Hutch-Essar has had IPO plans since 2004. But Hutch delayed the plans due to internal stake restructuring and also due to the spat over ownership of BPL Mobile's Mumbai circle. Had it happened, the IPO may have presented Essar an opportunity to encash a part of its stake.
The Ruias have a say on Hutch going public and also in the running of the company. Essar's consent is a must for all major business decisions.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment