Vodafone's request to buy out its minority Indian shareholders was not discussed by India's Foreign Investment Promotion Board, and will have to wait until the next meeting, at an unknown date in the future.
Vodafone is seeking government approval to lift its holdings in Vodafone India from 64.4 percent to 100 percent. Although total ownership is permitted, any increase above 75% has to be separately approved by the FIPB.
"All ministries and departments concerned did not give their comments, so it (Vodafone proposal) was not taken up," an official told the Business-Standard newspaper after the FIPB meeting.
Approval from the Cabinet Committee on Economic Affairs is also needed because the planned US$1.65 billion deal exceeds the government threshold of Rs 1,200 crore (US$188 million) for unregulated transactions.
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