NEW DELHI: UK’s Vodafone is learnt to have approached the Foreign Investment Promotion Board (FIPB) for approval to acquire 52% stake of Hong Kong-based Hutchison Telecom in mobile firm Hutch-Essar and also for investing in telecom activities.
The clearance is sought since under the government guidelines FIPB will have to approve Vodafone’s exit from Bharti and acquisition of Hutchison Telecom’s 52% direct stake in HEL, official sources said.
Guidelines under Press Note 1 make it mandatory for a foreign investor to submit a No Objection Certificate (NOC) from its existing Indian partner if permission is sought for another venture in the same sector.
Vodafone has submitted its board resolution and the NOC from Bharti, sources said, adding this should be sufficient to get the FIPB approval.
Since Bharti has already endorsed the acquisition, the British major believes it is just filling into the Hutch’s shoes in India and is complying with the local laws.