CHENNAI: The Madras High Court on Thursday approved the proposed scheme of amalgamation of Essar Telecommunications Holding Private Ltd with India Securities Ltd.
The court had earlier reserved its order on whether UK-based telecom firm Vodafone has locus standi to oppose the merger of two subsidiaries of its Indian joint venture partner Essar.
Vodafone had filed a petition against Essar's proposal to merge Essar Telecommunications Holdings (ETHPL), which has 11 per cent stake in Vodafone-Essar, with another Essar group's listed entity, India Securities, in order to find out fair market value of its stake in the joint venture.
Rejecting the plea filed by Vodafone against the proposed merger,Justice Vinod Kumar Sharma said Vodafone International had no locus standi to file objection.
"The objection of the petitioner with regard to locus standi of Vodafone International to file objection is therefore upheld," the judge said.
"The scheme of amalgamation being beneficial to both the Transferor and Transferee companies, its shareholders and its creditors, these company petitions (seeking to amalgamate the companies) are ordered," the judge said, delivering judgment on petitions filed by Essar.
The Judge also rejected the objection made by Income Tax Department against the proposed merger.