Vodafone buys out Essar
Vodafone have moved to buy out Essar's stake in a joint venture in India.
Business negotiations have concluded with Vodafone paying $5 billion (£3.1 billion) to buy out Essar Group's stake in a joint venture in India.
The company announced yesterday (March 31st) that Essar had exercised its underwritten put option over 22 per cent of Vodafone Essar Limited (VEL).
This move prompted Vodafone to utilise its call option over the remaining VEL shares held by Essar, which stood at 11 per cent.
It added that business negotiations are forecast to result in a final settlement being achieved no later than November 2011.
Speaking to the Guardian, analysts at Creditsights claimed that Vodafone is likely to "remain opportunistic" in tapping bond markets, thanks to the expected settlement date and "significant windfalls" from the sales of its assets.
"The equity market's muted reaction to today's formal announcement comes as no surprise, and we do not expect to see a major impact on spreads," they said.