The government on Friday cleared British telecom firm Vodafone's application for buying a majority stake in India's fourth-largest mobile operator Hutch-Essar Ltd.
The department had sent a notice to the company seeking details and clarifications on a host of issues besides the original agreement between Hutch and Vodafone to establish the jurisdiction of the tax authorities to determine the tax liability. This follow an SC order in January 2009 to the effect that Vodafone should present its case to the tax authorities first and submit a copy of the share purchase agreement, the deadline for which expires by the end of this month.
The little Pug that made mobile company Hutch's television ad one of the most successful campaigns of our times will follow the new master Vodafone, which has acquired Hutchison Telecom's stake in the venture.
Hutch's migration to the Vodafone brand became complete on Wednesday, but the pug that made the mobile company ever so popular with the masses will remain.
British telecom giant Vodafone on Friday said it is considering acquiring a controlling stake in India's fourth-largest mobile player Hutchison Essar.
Government approval for British telecom giant Vodafone's takeover of Hutch-Essar now depends on whether the two minority stakeholders in the company can prove through documents that they are not acting as benami shareholders for Hutchison.
Vodafone, which is yet to announce the acquisition, has offered to partner Essar, on which the Indian conglomerate said, "We are at the moment evaluating all our options in the best interest of the Group."
The Income Tax deparment has sent a notice to Vodafone, seeking around $1.7 billion in capital gains tax related to the sale of Hutchison Telecom International Ltd's 67 per cent stake in Hutch-Essar, now renamed Vodafone-Essar.
A shareholder of Vodafone Group has urged the company to abandon its plans to acquire India's Hutch Essar, saying the British telecom giant could overpay for the deal, British daily The Times reported on Friday.
British telecom giant Vodafone's plans to acquire India's fourth-largest mobile operator Hutch-Essar has received mixed reactions from some of its key shareholders.
Vodafone offers to buy out Hutchison Telecom's stake in India's Hutch-Essar at an enterprise value of $17 to 18 billion reports British daily Financial Times.
UK's Vodafone is learnt to have approached the Foreign Investment Promotion Board for approval to acquire 52 per cent stake of Hong Kong-based Hutchison Telecom in mobile firm Hutch-Essar and also for investing in telecom activities.
A name change is quite a tedious thing. And nearly all companies undertake the same exercise to go all out to assure their customers of the same fact -- that nothing has changed, except the name. So amongst the plethora of work all making the same declaration, it is quite difficult to be memorable.
The Supreme Court had ruled in Vodafone's favour in 2012.
Vodafone said on Wednesday it has completed the acquisition of controlling stake in Hutchisson-Essar Ltd while paying a less amount at $10.9 billion as against $11.8 billion announced earlier.
Agency reports said Hutchison Whampoa had received bid interest in its Indian mobile business, but that the prices indicated so far were too low.
Ruias have rights to tag along with Hutch in any sale.
Ambani to up ante by $3 bn on Ruia's hint at larger premium.
Ahead of discussions with Vodafone, Essar on Monday said it wanted 'partnership of equals' and 'joint management' in the country's fourth largest mobile venture Hutch-Essar, in which the UK giant is taking a majority stake.
The decks are being cleared for the acquisition of Hutch-Essar by Vodafone, with the department of legal affairs of the view that the 12.26 per cent stake held in Hutch-Essar by Asim Ghosh and Analjit Singh was in conformity with norms.
The race for India's fourth largest mobile phone company Hutch Essar Ltd intensified on Wednesday with the arrival of Vodafone CEO Arun Sarin in India.
Hutchison Telecommunications India Ltd is unlikely to give the Essar Group an option to match Vodafone's offer in the documentation of the sale of its 67 per cent equity stake in Hutchison-Essar.
Top representatives of British telecom giant Vodafone are understood to have met senior officials of department of telecom in New Delhi, presumably to discuss issues related to its interest in acquiring Hutch Essar.
TDSAT had stated no amount was payable till resolution of the disputes.
Wiser from the Hutch-Vodafone experience, the government is now thinking of clubbing both direct and indirect overseas investment to determine the extent of foreign direct investment in a company.
Sunil Mittal's Bharti, in which British telecom firm Vodafone has 10 per cent stake, said on Thursday it is yet to hear a final word from the UK-based operator on its plans to buyout Hutchison Telecom's stake in Indian joint venture Hutch-Essar.
Vodafone further said it has "always been confident" that no tax is due on the company. The government in August enacted a law to end all retrospective taxation imposed on indirect transfer of Indian assets. The rules under the law seek to withdraw tax demands made using a 2012 retrospective legislation to tax the indirect transfer of Indian assets and also refund the amount paid in these cases without any interest. Asked if the company has filed an application with the Indian government to settle the retrospective tax dispute, a Vodafone spokesperson said, "We can confirm we have filed an application".
However, Misra added that Vodafone will need to follow this transition up with a highly visible multimedia campaign in the initial two months. "This will instill confidence among consumers that their brand is in the right hands," he said.
A senior income tax department official in the know of the discussions to have taken place in the finance ministry said the ministry was looking into the issue as a possible option.
Vodafone brings back the 'ambassador pug' to advertise its customer care services. This is the third dog after Spikey and Chika being used for Vodafone and Hutch campaigns respectively. The pug brings a likeability factor to the brand irrespective of the fact whether you are a customer or not. Hutch had a positive brand image and to make sure that it continued the effective use of the dog was extremely pivotal for the transition. The pug is an integral part of communication.
Vodafone CEO Arun Sarin is expected to visit India next month to reconstitute the board of Hutch Essar, which would be renamed as Vodafone Essar.
Bharti Airtel on Tuesday welcomed the decision of the directors of Vodafone to abstain from its board meeting, in view of the UK-based telecom major's interest in acquiring rival Hutch-Essar.
Hutchison Telecom on Sunday said talks were on with various suitors for sale of its holding in joint venture Hutch-Essar in India and that there was no time-frame for a decision.
Vodafone, which acquired controlling stake in India's Hutch Essar, will bring its brand to the subcontinent later this year, the company's chief executive officer Arun Sarin has said.
Hong Kong-based Hutchison Telecom International Ltd, which sold its majority stake in Hutch-Essar to Vodafone, has already made its final submission before the investment regulator.
Vodafone recently bought the 67 per cent stake held by Hutchison. The remaining equity is held by the Ruias.
Opening another line of inquiry into the Hutch-Essar shareholding structure, the Foreign Investment Promotion Board (FIPB) is looking into the call options that would together give Vodafone a further 15.03 per cent proportionate indirect equity owner
Ahead of Thursday's Foreign Investment Promotion Council meeting that would take up sale of stake in Hutch-Essar to Vodafone, the UK company's director Mathew Kirk met telecom secretary Dinesh Mathur on Wednesday.
Sarin said Hutchison obviously had its own compulsions of not being able to continue in India.
A report in The Observer on Sunday said the bidding war for telecom firm Hutchison Essar will erupt again, with Britain's Vodafone preparing to table a fresh offer that would value the target at up to 19 billion dollars.
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