Hutch Essar Ltd, India’s third largest wireless service provider, will hold a board meeting on Friday, the first after the UK-based Vodafone Group Plc. acquired a 67% stake in the company from Hutchison Telecom International Ltd (HTIL) for around $11 billion (around Rs45,100 crore) in February.
Vodafone chief executive officer Arun Sarin is in town to attend the meeting.
In April, the Foreign Investment Promotion Board approved buying of HTIL’s stake by Vodafone. The company had announced earlier that a new board of 12 directors will be constituted for the new company, which will be named Vodafone Essar. The company is awaiting for the approval from the Registrars of Companies for the new name.
Out of the 12 directors, four will be from the Essar Group. Essar’s vice-chariman Ravi Ruia will head the board as chairman. Prashant Ruia and Anshuman Ruia, sons of Essar group chairman Shashi Ruia, will be the other directors on the board. Essar Teleholdings CEO Vikash Sharaf will be the fourth director from the Essar Group.
Max India Ltd chairman Analjit Singh and Hutch Essar managing director Asim Ghosh, who jointly hold 12.26% stake in the company, will be the other two members on the board.
Sarin will be the vice-chairman and joining him will be Vodafone executive Paul Donovan. Vodafone has yet to name its other four directors.
Vodafone has already said it will invest about $2 billion to expand the existing Hutch network throughout the country, especially in rural areas.