Essar Communications Mauritius Limited (ECML) today declared that its completely owned subsidiaries, Essar Communications Ltd. (ECL) and Essar Communications Ltd. (ECom) have sold the 22% shareholding in Vodafone Essar Ltd. (VEL) to Vodafone.
Essar Sells Its Shareholding in VEL To Vodafone
The agreement was signed in Port Louis, Mauritius. Vodafone has paid Essar US $3.32 billion after the deduction of withholding tax of US $0.88 billion.
Vodafone and ECML believe that no tax is due on this transfer but it was viewed that it was prudent to substract and pay withholding tax on an unbiased basis and have ECL and ECom claim a refund of the withholding tax after the due process.