Vodafone court victory paves way for IPO
Telecom giant, Vodafone Group’s victory in India has paved the pay for the company to start planning its initial public offering (IPO) in the country, which has become an important market for the global giant.
The company court victory in a case lasting more than four years came as the Surpreme Court dismiss the government’s demand for $2.2 billion in taxes from Vodafone for its acquisition of Hutchison Whampoa Ltd’s India operations in 2007.
Vodafone Chief Executive Officer Vittorio Colao had recently said that the company was not able to proceed with its listing plans as the ongoing case created an uncertain regulatory environment for the company.
The court cleans the confusion on weather global companies can use offshore holding companies to avoid paying taxes in India. Vodafone acquired its partner Essar Group’s stake for $5.46 billion last year to consolidate its control over the company, which is a leading player in one of the biggest telecom market in the world.
Vodafone Essar has 146 million customers and enjoys a 17 percent market share, which makes it the third biggest telecom service provider in India.