New Delhi: Hutchison Telecom Board is understood to have concluded it’s meeting on the bids received for its holding in Hutch-Essar. Sources say Vodafone has made the highest bid at over $18 billion.
However, there was no confirmation from either HTIL or Vodafone.
Reliance Communications, Hindujas and Essar, the Indian partner in the venture with 33 per cent stake, had also submitted their bids on Friday.
Vodafone is desperate for a stronger presence in India and seems most likely to partner Essar if it comes down to the wire. But it is constrained by the fact that its bid will have to be price sensitive.
For Anil Ambani's Reliance Communications, Hutch makes a lot of strategic sense but regulatory issues could come in the way.
Essar has the right of first refusal and looks keen to have a larger telecom play. But don't be surprised if they sell out.
Hindujas may well be the dark horse. Most analysts ruled them out even before they started due diligence. But they understand telecommunications and look hungry.
Suitors for the 67 per cent Hutchison stake submit their bids on Friday in Hong Kong. There was also a fifth player -- Altimo of Russia -- in the fray.
According to sources Altimo has tied up with Rothschild as advisor and Nomura of Japan as their financier.
There are atleast four players, including the UK-based Vodafone, NRI Hindujas and Indian entities Reliance Communications and Essar (Indian partner in Hutch-Essar JV with a 33 per cent stake), who have evinced interest in buying HTICL's 67 per cent stake.
Hutchison Telecommunications International relies on India as its 67 per cent stake holder Hutchison Essar contributes to an estimated four-fifths of operating income. The Hong Kong firm is expected to end 2006 in the black after a hefty 2005 loss.
The company’s India operations expects reaching out to 180 million mobile phone users by end-2007, up more than 25 per cent from 143 million now.
Hutchison Telecom has been an avid deal-maker across Asia. But long-cherished hopes of listing its Indian business have been hampered by regulatory changes amid a dispute over local acquisitions with partner Essar, a conglomerate controlled by India's Ruia family.
With Agency inputs
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