Essar Communications Mauritius Limited today announced that its wholly owned subsidiaries, Essar Communications Limited (“ECL”) and Essar Com Limited (“ECom”), have sold the 22% shareholding in Vodafone Essar Limited (“VEL”) to the Vodafone Group.
Under the agreements signed in Port Louis, Mauritius, Vodafone has made a net payment of US $3.32 billion, after deduction of withholding tax of US$0.88 billion.
While Vodafone and ECML continue to believe that no tax is due on this transfer, it was viewed as prudent to deduct and pay withholding tax on a without prejudice basis and have ECL and ECom claim a refund of such withholding tax after following due process.
