Click to play videoNew Delhi: British mobile giant Vodafone reached an agreement on the management and organisational issues with Indian mobile firm Hutch-Essar on Thursday.
While announcing the terms and conditions of partnership with Ruias-promoted Essar, Vodafone CEO Arun Sarin said the new venture will be called Vodafone Essar.
The operational control of Hutchison Essar, in which it is buying a 67 per cent stake for $11.1 billion, will vest with Vodafone.
The new management will be headed by Ravi Ruia as the new company's chairman while arun Sarin will hold the position of Vice Chairman. Essar will get proportionate board representation in the new entity.
While Essar will continue to hold a 33 per cent stake in Vodafone Essar, it will have the option to sell its shareholding to Vodafone for $5 billion.
"The partners have agreed that Hutchison Essar will be renamed Vodafone Essar and in due course the business will market its products and services under the Vodafone brand," PTI quoted the agreement.
The decision came after Sarin and Ravi Ruia met Union telecom minister Dayanidhi Maran and briefed Maran about the future plans of their joint venture.
Meanwhile, Commerce Minister Kamal Nath has given a green signal to the deal saying the purchase is in line with FDI regulations.
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