The race for Hutch stake !

[mywebid 21]

Hutch ka aisa haal ho gaya hai jaise 'bakre ko sadak par ghada kar kar dalal boli laga rahen ho'

Edited January 6, 2007 by abdigit

[jusmail 0]

RCL allies seek 12% in Hutch-Essar

Jan 6, 2007

Reliance Communications (RCL) has received commitments of $2 billion from four global private equity majors Kohlberg Kravis Roberts and Co (KKR), Blackstone Group, Carlyle Group and Apax Partners for its proposed acquisition of Hutch-Essar. In return, the global companies have sought 10-12 per cent stake in Hutch-Essar, if RCL wins the bid.RCL has commitments from banks for providing the remaining $15 billion, sources closeto the development told Business Standard.

RCL is also believed to have received financial commitments of $15 billion from global bankers. The total $17 billion ($15 billion from bankers and $2 billion from PE companies) would help the company acquire Hutch-Essar, the enterprise value of which is hovering around $17.5 billion.

An RCL spokesperson declined to comment, but added that the company was in talks with a host of private equity players. However, RCL has not committed to any of the private equity majors and is believed to be evaluating the offer. The Indian company is expected to take a decision after it submits its expression of interest (EoI) with Hong Kong-based billionaire Li Ka-shing. Li Ka-shing had put his 67 per cent stake in GSM provider Hutch-Essar, which he holds through a subsidiary company, Hutchison Telecommunications International (HTIL). The remaining 33 per cent is held by Essar group, owned by the Ruias. RCL is yet to place a formal expression of interest (EoI) with HTIL and is expected to make a bid after Makar Sankranti that falls on January 14. It was also in discussions with American billionaire and financier George Soros, who manages over $21 billion of funds, and the New York-based Warburg Pincus for raising equity for the acquisition. The company had also initiated talks with the Texas Pacific group (TPG) and Temasek for funds. A host of banks and a couple of buyout funds had also committed to provide funding, if the deal were to go through. According to a report by Man Financial, RCL may raise $7 billion as debt, while the remaining would be financed through equity issuance to the deal partners. The brokerage and analysis firm had also stated that the deal is likely to be financed through a combination of debt and equity.

[jusmail 0]

Orascom holds trump card in Hutch

Jan 7, 2007 Sunday, January 07, 2007 21:15 IST

NEW DELHI: If the story so far is that Hong Kong tycoon Li Ka-shing and the Ruias of Essar are scrapping over the latter's right of first refusal (ROFR) in case Hutchison Essar is sold, here's news: there's one more player with ROFR rights, and it's Orascom Telecom, the Egypt-based telecom operator which has 19.3% in Hutchison Telecom International Ltd (HTIL). By virtue of his stake in HTIL, Orascom CEO Naguib Sawiris has a say in how HTIL's 67% holdings in Hutchison Essar get sold, and possibly to whom. When DNA Money SMS-ed a query to Sawiris on Sunday, his cryptic reply confirmed that he had ROFR rights at the level of HTIL, in case Li wants to sell out. But if it is the holdings of HTIL in the Hutchison Essar subsidiary that get sold, the matter well have to be cleared by the HTIL board, of which Sawiris is a member. While this may not give Sawiris a veto, he clearly is a player in the game. When DNA Money asked him how Orascom would vote in case Li decided to sell, Sawiris answered enigmatically: "That is a million dollar question." What this could imply is that the Hutch sale really involves two Li Ka-shing partners with ROFR rights, though the one with the Ruias is admittedly under hot dispute. It could also mean that you can't rule out Orascom as a serious bidder for Hutch at some point. In a telephonic interview last week, Sawiris told DNA Money that he was waiting for a nod from the government to start doing business in India. If that comes, Orascom could well change from sleeping partner in Hutch to another frontrunner. Or at least one with full ROFR rights. Orascom could also be the reason why Hutchison is so clear about interpreting the Ruias' ROFR as limited to sale to an Indian player.

[Arun 795]

Thumbs down for Reliance Communications

Vodafone takes lead over Reliance Communications in Hutch-Essar race

Press Trust of India

London/New Delhi, January 8, 2007

British telecom operator Vodafone is all set to start due diligence for Hutchison- Essar, which has denied Reliance Communications access to its books, UK's Financial Times reported.

Vodafone has appointed Ernst and Young to help it study Hutchison Essar's books, FT said, adding that 15 executives of the UK firm have been flown to Mumbai for the purpose.

The report, quoting unnamed sources close to the negotiations, said that access had been denied to Reliance Communications (RCOM) giving Vodafone "de facto exclusivity to pursue the deal." While a Vodafone spokesperson was not available for comment, an RCOM spokesperson declined to comment on the denial of access to Hutch-Essar's books.

An HTIL spokesperson said from Hong Kong that "we do not comment on the state of negotiations." If Vodafone succeeds in clinching the deal, Hutchison Telecom, which owns 67 per cent stake in Hutch-Essar, would be able to complete the transaction without taking the consent of its Indian partner.

An HTIL spokesperson had earlier said that Essar need be given Right of First Refusal only in the "limited case of a sale to certain Indian telecom companies. There is no RoFR over any other buyer." Sources said under the agreement pertaining to RoFR, Essar can invoke its right only when HTIL's direct or indirect holding in Hutch-Essar dips below 40 per cent on account of sale to three Indian companies — Reliance Group, Tata Group and Bharti Airtel.

[Kunal Hemrajani 1]

I wish.. Vodafone cud tak over Hutch..

it wud b so cooooooooooooool..

But no Reliance plz..

[GSV13 0]

Reliance & all ambani chors i hate them! Will never opt for any reliance services again!

Don't ruin hutch by handing it to ambani chor!

[theking 35]

but dude...do remember that the current cellular regime was brought over by reliance in india...

v wouldn't have thought bout this cheap telephonic services earlier, had it not been rim !

they change the sector they enter....look over malls now...the local market near the mall in hyd is totally gaucherie, including the cart sellers!

[linuxguy 0]

yup...now i too am hoping that Vodafone takes over Hutch instead of Reliance since with 40 odd million customers, Reliance will increase the tariffs uninhibitedly!

[HetalDP 947]

Reliance and BSNL Definately helped in Mobile Market to and made the Industry Think in Volume Based Margin Business

It had bring down the Cost,

But if Reliance Get Hutch Existing Reliance customer will loose and Reliance will gain

1. What Reliance will gain - 2 Crore customer

2. What old CDMA Customer will - Opportunity to either use Newer, Better All EDGE Enabled GSM Network than old, Stucked, Scatter Network of Hutch.

Major Essar, Cellforce, Hutch Site and Equitment are older. If Reliance take All India GSM in a New way We could gain as Better GSM Equipment will be with us..

Who care How much Customer does our Service Provider have ???

[theking 35]

thats true....reliance has always made a better difference in the sector they enter for sure...they really made the value chain worth with the better competition!

[vmsanghrajka 0]

i personally want reliance 2 take over hutch rather thn vodaphone.. i agree tht more players mean better competetion.. but if rcl takes over, its will have huge customer base, better opetating margins, reduced costs, number poratbility witin reliance, more on-net offers and lots of other goodies.. i hav no reason to believe tht reliance will incerase traiff coz infact they will infact go wit the killer instinc in monoplostic market..

don forget guys, rcl thaught indian telecom industry of free incoming calls, on-net packs, free sms, big tim WAP/GPRS, wireless landline (FWP/FTP) and lots other things

[city02 63]

TRAI mandated free incoming (CPP regime) for all mobile operators and RCL had little to do with the decision

[HetalDP 947]

i personally want reliance 2 take over hutch rather thn vodaphone.. i agree tht more players mean better competetion.. but if rcl takes over, its will have huge customer base, better opetating margins, reduced costs, number poratbility witin reliance, more on-net offers and lots of other goodies.. i hav no reason to believe tht reliance will incerase traiff coz infact they will infact go wit the killer instinc in monoplostic market..

don forget guys, rcl thaught indian telecom industry of free incoming calls, on-net packs, free sms, big tim WAP/GPRS, wireless landline (FWP/FTP) and lots other things

All Reliance GSM come under Reliance Telecom which is Different Company

and in Every Bill On Net Call are not considered in Reliance Telecom Phones

[petar 15]

if reliance takes over... its win-win for company as well as consumer. The synergies would be fruitful both ways.

Remember... there is still Bharti, Idea , BSNL as competition. Besides the cost of changing providers in GSM is hardly a barrier to stop consumer from migrating from 1 operator to another.SO its not that reliance can increase tariffs on thier will.

[Arun 795]

Anil Ambani to pursue Hutch deal: Reliance Comunications Board

Reliance Communications to start due diligence from tomorrow

Business Standard - Mumbai - January 10, 2007

Reliance Communications has reaffirmed its interest in acquiring Hutch-Essar, and approved raising of $1 billion through issuance of Foreign Currency Convertible Bonds (FCCBs). The company is also looking at various models of raising long-term resources like external commercial borrowings (ECBs) for funding the acquisition.

The company's board, which met here today, approved issuance of FCCBs of upto $1 billion in global markets. The FCCBS would be issued in one or more tranches and at a premium to the present market price, the company informed Bombay Stock Exchange (BSE) today.

It has also authorised the company chairman Anil Ambani "to take all necessary steps for this purpose" (acquisition), including raising of resources. However, the company also cautioned that there is "no certainty either on the completion or timing" of the buyout.

When contacted a Reliance spokesperson declined to comment, stating that the company had sent the mandatory statement to the stock exchanges.

Hong Kong-based billionaire Li Ka-Shing had put his 67% stake in Indian GSM operator Hutch-Essar for sale, which he holds through Hutchison Telecommunications International Ltd (HTIL). The remaining 33% is held by Indian business conglomerate, Essar Group.

Reliance Communications, which had earlier sought regulatory approval for $1.2 billion global depository receipts (GDR), has also received commitments of another $2 billion from four global private equity majors.

The global majors — Kohlberg Kravis Roberts & Co (KKR), Blackstone Group, Carlyle Group and Apax Partners – had sought 10-12% stake in Hutch-Essar, if RCL wins the bid.

The company was also in discussions with American billionaire and financier George Soros, who manages over $21 billion of funds, and the New York-based Warburg Pincus for raising equity for the acquisition.

It is also believed to have received financial commitments of $15 billion from global bankers. The enterprise value of Hutch-Essar was hovering around $17.5 billion.

PTI adds: Reliance Communications would start the process of 'confirmatory due diligence' on Hutch-Essar tomorrow.

The Anil Ambani Group firm would start examining the books of India's fourth-largest mobile player tomorrow along with its advisor KPMG and investment bankers JP Morgan, ABN Amro and HSBC, sources close to the developments said.

[HetalDP 947]

Anil Ambani Meets

Hon. Finance Minister to Clear it's ECB (External Commercial Borrowing) faster

Also expected to meet Hon. Communication Minister Mr. Dayanidhi Maran today late evening

[FEVIN-RAJ 61]

no updates .....?

[HetalDP 947]

WHy too Waste time in Hutch Tussle

I will atleast take 1 to 1.5 Months

As Too much Legal Mis Understanding and too much Competitors

It will atleast take 1 to 2 months as per my assumption

[WALKER 0]

I really wish that Reliance wins over the Vodaphone & buys the Hutch shares..............

Why do we need foriign operators when an Indian operator is providing

excellent services at rock bottom prices....................

[linuxguy 0]

so...any new news on the Hutch tussle? I feel Vodafone's going to take the cake! What say guys?

[HetalDP 947]

Too early to says

More Bigger Players like

Vodafone, Reliance with Essar and Ruis

It is still difficult to say

[Kunal Hemrajani 1]

I`LL cheer for VODAFONE..

[kesav 127]

Anil raises $2 billion from Citi Bank, Standard Chartered for Hutch buy

Mumbai, January 23, 2007

With only a few days left for placing the final bid to take over India's fourth largest telecom company, Hutchison Essar, Anil Ambani has been quietly raising funds to finance the proposed transaction.

Anil Ambani, who has been authorised by the Reliance Communications Ltd (RCL) board to mop up resources for the Hutch acquisition, is understood to have struck a deal with Citi Bank and Stanchart to raise $2 billion (8852 crore). RCL has also secured government approval to sell as much as $1.2 billion of securities overseas on Tuesday.

Investment banking sources said that that the $2 billion transaction would be completed in February. Though sources from both the banks confirmed the development, it could not be independently verified whether the money raised will be used to fund the multi-billion Hutch-Essar acquisition.

An ADAG spokesperson declined to comment. However, analysts tracking RCL said that fund would be used for the Hutch.

RCL board has approved a proposal to raise $1 billion through a foreign currency convertible bonds issue which has been approved by its board two weeks ago.

Anil Ambani is also in negotiations with global private equity funds like Blackstone and Carlyle to fund the Hutch transaction which is being valued by the bankers at $ 15-16 billion.

ABN Amro Holding, Barclays and Deutsche Bank are also helping the company to raise funds.

The acquisition of Hutch is crucial for RCL as it helps in raising its market share in India's cellular market to more than 35 per cent. The agreement would combine RCL's CDMA-based operations with Hutch's GSM service in 16 of 23 telecommunication circles across the country.

Source :: http://www.hindustantimes.com/news/181_1909683,0002.htm

[kesav 127]

Hutch board may meet on January 29

January 23, 2007 16:13 IST

The Board of Hutchison Telecom International Ltd, whose 67 per cent stake in Indian mobile operator Hutch-Essar is being eyed by Vodafone and Reliance Communications among others, is likely to meet on January 29.

Sources close to the development said that the Board would meet on January 29, but it was not clear whether it would take a call on the sale of HTIL's stake in the Indian mobile venture.

A spokesperson for HTIL's parent company Hutchison Whampoa Ltd, Jeremy Lau declined to comment on 'board matters.'

Hutch-Essar, in which Indian partner Essar Group holds a 33 per cent stake, is being wooed by a number of suitors including UK's Vodafone and Reliance Communications. Besides Essar itself is in the race to acquire control of the company.

While these three suitors have already completed due diligence for a possible deal, another potential buyer Hinduja Group has said it would begin due diligence on January 24.

source :: http://inhome.rediff.com/money/2007/jan/23hutch1.htm

[HetalDP 947]

Lets Cheer for Vodafone or Reliance