The race to acquire Hutch Essar’s 67% stake has entered the penultimate stage with the reported decision by Hutchison Telecommunications International Ltd (HTIL for short), the company that holds the share, to convene shareholders’ meet on Feb 15 next. The meet is expected to seek approval from shareholders regarding sell-off of the stake. [Link to the image]
Those who are circling in the sky to get a hand on Hutch Essar’s stake-sale include Indian giant Reliance Communications, European giant Vodafone and of course Essar itself.
Though these are usual corporate happenings, I’m keenly watching the development as it unfolds since I’m a Hutch subscriber for a long time. Somehow I’ve a liking for Vodafone, which may be because one gets to see their ad on tv while watching European premier league soccer matches.
The moot point is HTIL has in December said the floor price of the stake-sale in HEL is $14 billion. According to experts in the know, this is an awesome amount. On the flip side, this big amount indicates India’s telecommunications potential in coming days.
The Oct-Dec Q3 results of most tele-companies are very robust. Bharti Airtel for example has had a big jump in both its topline and bottomline. Analysts opine that since India’s teledensity is still abysmal, there’s huge scope of tele-companies to clock sterling performance for quite some time.
No doubt, HTIL’s floor price for HEL’s 67% justifies that optimism.
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