Essar To Sell Its Stake In Vodafone Essar Ltd To Vodafone

By July 1st, 2011 AT 9:54 PM

Essar To Sell Its Stake In Vodafone Essar Ltd To VodafoneEssar 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.

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