UK-based telecom major Vodafone Group said on Thursday it has exercised its option to acquire Essar's stake in their joint venture, Vodafone Essar, which will result in a cash flow of $5 billion for the Indian firm.
"Vodafone Group announces that the Essar Group has exercised its underwritten put option over 22 per cent of Vodafone Essar Limited.
"Following the exercise by the Essar Group of its put option, Vodafone has exercised its call option over the remaining 11 per cent of VEL owned by the Essar Group, resulting in a total cash payment of $5
billion," Vodafone said.
With this, Essar will exit completely from the joint venture, which is offering nationwide mobile services in India.
The company also that final settlement is anticipated to be completed by November, 2011.
