The Hindu Business Line : Vodafone-Hutch deal: Decision likely at next FIPB meeting

New Delhi April 3 The Department of Telecommunications on Tuesday said that a decision on Vodafone's proposal to acquire Hutchison Telecom International Ltd's stake in cellular company Hutchison Essar, was expected in the next meeting of the Foreign Investment Promotion Board. DoT also reiterated that it had no objection to the proposed deal.

"As far as licensing conditions are concerned, we have found nothing out of the ordinary," said Mr D.S. Mathur, Secretary of the Department of Telecommunications, on the sidelines of an industry event.

The clarification comes in the wake of reports that DoT was objecting to the deal where UK-based Vodafone Group Plc was proposing to acquire 52 per cent stake in Hutchison Essar.

RBI, Ministry views

Mr Mathur also said that a decision would be taken cumulatively. Apart from DoT, views of the Reserve Bank of India and Law Ministry have also been sought by FIPB. The RBI has expressed concern towards the deal on the grounds that the equity holding structure could be violating the Foreign Exchange Management Act. With DoT favouring the deal, the Law Ministry views could be crucial to the decision making process.

DoT officials had earlier told Business Line that it had no objection to the deal and the decision would be based on the views of other ministries. Vodafone's executives had also met with senior DoT officials to garner support for the deal. The next meeting of the FIPB could be on April 12 depending on when the Law Ministry gives its views.

FIPB is examining allegations that HTIL was illegally holding 67 per cent stake in Hutchison Essar by giving loans to Mr Asim Ghosh and Mr Analjit Singh to hold 12.26 per cent stake in the mobile venture on behalf of the Hong Kong-based company.

The board has asked the company to submit the terms of loan extended to the two individuals. It is also examining whether the two individuals are allowed to sell their equity to a third party at market price or only to HTIL at par value.

More Stories on : Telecommunications | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Geodesic Info pref allotment

CCS Info bags Rs 1.5-cr order

DoT may give BPOs more time to register

Vodafone-Hutch deal: Decision likely at next FIPB meeting

Goldstone Tele eyes value-added products

Wipro ramps up Pune operations

Hexaware opens Gurgaon centre

Satyam high in investor relations

Financial Technologies sells stake in DGCX

99acres, builders forum ink MoU

Moores Rowland ties up with Tango

The `option' issue unlikely to trip the Hutch deal

MTNL floats Rs 210-cr broadband tender

Pune's wireless project targets municipal schools

Accenture expands in Hyderabad

Aircel Group loses top executives

New inkjets challenge lasers in corporate printing arena