OREANDA-NEWS. July 1, 2011. Essar Communications (Mauritius) Limited (“ECML”) is pleased to announce that on 1st July 2011, its wholly owned subsidiaries, Essar Communications Limited (“ECL”) and Essar Com Limited (“ECom”), have sold the 22% shareholding in Vodafone Essar Limited (“VEL”) to the Vodafone Group.

Under the agreements signed in Port Louis, Mauritius, Vodafone has made a net payment of USD 3.32 billion, after deduction of withholding tax of USD 0.88 billion. While Vodafone and ECML continue to believe that no tax is due on this transfer, it was viewed as prudent to deduct and pay withholding tax on a without prejudice basis and have ECL and ECom claim a refund of such withholding tax after following due process.