Vodafone finally acquired controlling stake in Hutchison Essar, India’s fourth largest mobile operator, but it would pay $200million less than the proposed offer.
Vodafone offered to pay $11.1billion to Hutchison Telecommunications International, for a 67 per cent economic interest in Hutchison Essar, but now it would pay $10.9billion. The reduction of $200m is mainly the result of Vodafone agreeing to bear the full cost of exercising options over a 15 per cent stake in Hutchison Essar held by two Indian businesspersons. That 15 per cent stake was the subject of intense scrutiny for Indian regulators.
Vodafone will own 52 per cent Telecommunications International Limited (HTIL) shares in Hutchison Essar directly, whereas it will have options over another 15 per cent held by Asim Ghosh, managing director of Hutchison Essar, Analjit Singh, chairperson of Max India, a healthcare group.
Overwhelming with the completion of the deal, Vodafone’s chief executive, Arun Sarin said
I am confident that the Hutch Essar business will make a major contribution to the Vodafone group over the coming years
This successful deal seems a lucrative for Vodafone, Hutchison Telecommunications International Ltd, reported net quarterly profit surged $28.14 million and its subscriber numbers in India increased 72% to 26.44 million compare to the same period of 2006.
Image: Flickr
Source: Financial Times
