By then Vodafone expects to control per cent of the market against 16 per cent now. But it still had low penetration rates, making it the most lucrative market for global telecom companies. Though some critics felt that Vodafone had overpaid for Hutchison Essar, Vodafone contended that the price was worth paying as the deal would help it get a massive footprint in one of the most competitive telecommunication markets in the world. Nor is it a primary information source. Also one can expect such deals for vendors who are already manufacturing in India. Once the board approves it, Ghosh will formally take charge.

Vodafone , Hutchison Essar. HTIL also wanted to use the money earned through this deal to fund its businesses in Europe. There are two main reasons which are responsible for Li Kashing to leave India. Vodafone Eyes Hutchison Essar. The deal with Bharti will also keep capex costs in check for Vodafone.

Analysts estimate that Vodafone was probably the least leveraged of all the bidders and this helped them bid aggressively.

Other Contenders for the Bid. Therefore, the debt component in the deal is likely to be low, according to an analyst.

Hutch Vodafone Merger – An Issue of Tax Planning

The Hutchison Essar Acquisition: Chat with us Please leave your feedback. This is despite a Tht could be a source of problem.

case study of vodafone hutch merger

The deal with Bharti will also keep capex costs in check for Vodafone. Analysts huhch that Vodafone was probably the least leveraged of all the bidders and this helped them bid aggressively.


Finally, valuation must be judged from the perspective of the buyer sellers would prefer the highest bidder, everything else being equal.

However, Vodafone has reportedly reserved the right to walk out of the deal if litigation to thwart the deal is launched. While Hutch has been adding around 1 million subscribers a month, market leader Bharti has been adding 1.

Hutch Vodafone Merger – An Issue of Tax Planning

Hutchison-Essar Year and Events: What’s more, penetration levels are still low at 12 per cent less than 2 per cent in rural Indiaand as developed telecom markets slide into saturation, India is clearly the geography where most of the long-term potential is concentrated. Enter the email address you signed up with and we’ll email you a reset link.

case study of vodafone hutch merger

Buy With PayPal Amount to be paid: It is expected to touch 40 per cent by Help Center Find new research papers in: Second, it needs to tap rural India in a big way. What could he do with that money? The immediate advantage of such an agreement is that it will be possible for both operators to tap the emerging rural market quickly.

In case Essar wants to exit, Sarin points out that it will be paid the same price that Vodafone offered to Hutch. Whether the UK-based Telco overpaid is another question. However, in DecemberOrascom hytch Egypt bought a This could lead to lower tariffs, though it remains to be seen how much lower it can go from Re 1 a minute.


case study of vodafone hutch merger

Remember me on this computer. Technically, therefore, Vodafone can pick up another 22 per cent.

A Merger is a combination of two or more companies where one corporation is completely hitch by another corporation. Comparison of Airtel’s and Vodafone’s marketing strategy in India. It is only after he exits that the rush begins. Vodafone Acquisition of Hutch-India: Reasons for Hutch Sale: Unconfirmed sources say that Reliance Communications was wary of raising too much debt, which may have acted as a deterrent. So, comparatively, Vodafone may be willing to pay more for a significant presence in the country compared to, say, Reliance, which is already present.

In the yearthe world’s largest telecom company in terms of revenue, Vodafone Plc Vodafone made a major foray into the Indian telecom market by acquiring a 52 percent stake in the Indian telecom company, Hutchison Essar Ltd Hutchison Essarthrough a deal with the Hong Kong-based Hutchison Telecommunication International Ltd.