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Vodafone stake sale in RPG questioned

By Our Special Correspondent

CHENNAI AUG. 23. The Goenkas have questioned the sale of close to 21 per cent of its stake in RPG Cellular by Vodafone.

The Goenkas are upset that Vodafone failed to give them the first right of refusal. Further, they are livid that Vodafone sold its stake to the Sterling group led by C. Sivasankaran at a sub-market valuation.

If sources are to be believed, they have already moved the Madras High Court against the Vodafone stake sale to Sterling.

Even as the RPG group of Goenkas has expressed its anger, Sterling is not averse to upping its stake in the mobile service provider, RPG Cellular.

The Sterling group sprang a surprise on corporate watchers by buying the nearly 21 per cent stake held by Vodafone in the Chennai firm in a deal clinched overseas. Consequently, the Sterling group can have two representatives on the board of RPG Cellular. Sources said the deal had been completed but declined to divulge details on the price.

Mr. Sivasankaran himself had indicated earlier that Sterling could consider all options vis-a-vis RPG Cellular, depending on the emerging scenario. It is now gleaned that Sterling has indeed evinced interest in taking over the cellular operator should the Goenkas opt to quit.

For the Sterling group, the control of RPG Cellular could bring a lot of good since it has already a cellular operation in Tamil Nadu circle through Aircel brand. Aircel, which has now focussed on pre-paid service, has a customer base of 2.70 lakhs.

With RPG taking an offensive tone, Sterling, it looks, may be in for a fresh fight on a totally different field.

The group, it may be recalled, is caught in a web in Tamilnad Mercantile Bank (TMB) after acquiring shares from the Ruias of the Essar group.

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