Ok.. this is as crazy as it can possibly get! Tatas buy Corus – the Brit Steel major for .. $11.x billion. The Brits – led by their Indian Born CEO – strike back with Vodafone buying Hutch for …. $11.x billion!! Hmm interesting! When Friedman twisted Nilekani’s quote to call the world Flat.. he wasn’t joking! Stakes are getting more equitable than most of us realize! In just 3 years Indian billionaires have risen from just 2 to 28! The same can happen to a Thailand or Zambia if the educated class takes off.
After months of pitched battle, British mobile telecom major Vodafone Monday formally said it is buying a 67-percent stake in India’s fourth largest mobile firm Hutch-Essar for $11.1 billion and targeting a 25-percent market share in the country in five years.
The London-headquartered company, that submitted a formal bid to the Hutchison Whampoa group midnight Friday, had earlier offered to pay $19 billion for the entire 100 percent-stake in Hutch-Essar. Vodafone has also agreed to take over a debt worth $2 billion.
The remaining 33 percent stake in the mobile phone company is with the Ruias of Essar. Vodafone has offered to buy that stake as well.
"Vodafone announces it has agreed to acquire companies that control a 67-percent interest in Hutch Essar from Hutchison Telecom International Ltd. (HTIL) for a cash consideration of $11.1 billion," a Vodafone statement said.
For Vodafone, the acquisition will make India their third largest mobile phone market after Germany and the US with over 23 million subscribers and a 16.4 percent national market share, industry sources said.
"This announcement is clear evidence of how we are executing our strategy of developing our presence in emerging markets," said the India-born chief executive of Vodafone Arun Sarin.
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