Essar group firm India Securities (ISL) today said it has extended the last date for obtaining all requisite approvals for merger of another group firm Essar Telecommunications Holdings to September 30.
"India Securities has informed the Scheme of Amalgamation of Essar Telecommunications Holdings ("Transferor Company"), the board of directors of the company and the transferor company at their respective meeting held on March 29, extended the last date for obtaining all requisite approvals to the scheme to September 30, 2011," ISL said in a filing to the Bombay Stock Exchange.
The issue relates to the proposal by the Essar Group to merge Essar Telecommunications Holdings (ETHPL), which has 11% stake in Vodafone-Essar, with another subsidiary, ISL.
UK-based Vodafone, which is a joint venture company with Essar as Vodafone Essar, has objected to the merger as it is concerned that such a move could distort the valuation of the joint venture and that the value of ISL could be misinterpreted as a fair market value of Vodafone Essar.
The row between the partners erupted when Essar embarked on the reverse merger of ETHL into its listed group firm, India Securities.
Essar started the process as a price discovery move with the put option date approaching. Vodafone had filed an appeal against Essar's move in the Madras High Court where the latter has initiated the merger proposal of the two group firms.
Essar reacted stating Vodafone had no locus standi to oppose the move as it was neither a shareholder nor a creditor in these companies.
