Hutch-Essar Board meets
Although the meeting came in the backdrop of ongoing developments for its reported takeover, it is learnt that the purpose of the Board was only to discuss operational aspects.
By PTI |
MUMBAI: The Board of Hutch-Essar, India's fourth-largest mobile firm that is believed to have generated interest among domestic and global players, met here on Friday.
News of the meeting triggered fresh speculation about the purpose, but sources in the know said it was a routine Board meeting of the joint venture on its operations.
The Hutch-Essar board is understood to have discussed the financials as well as operations of the company for the third and the last quarter of 2006-07.
The JV, where Hong Kong-based Hutchison Telecom International Ltd (HTIL) has 67 per cent and Indian partner Essar the remaining 33 per cent, is being valued at up to $17 billion by sources associated with various aspirants.
British telecom giant Vodafone and India's second-largest private mobile player Reliance Communications, besides Malaysia's Maxis are reported to have evinced interest in acquiring Hutch-Essar.
The JV has presence in 16 circles with a subscriber base of close to 19 million. Besides, it has obtained Letters of Intent for seven more circles, which would spread the company's presence across India.
Although the meeting came in the backdrop of ongoing developments for its reported takeover, it is learnt that the purpose of the Board was only to discuss operational aspects.
Sources, however, said the issue of selling Hutch-Essar was put off by the Board as the two JV partners - Hutchison and Essar - are reported to have different strategies.
Both Essar and Hutchison have had sour relations over various issues in the recent past. This was also clear from the fact that the JV could not come out with its Initial Public Offering (IPO) planned long ago.
This also led to a tussle between the two partners over the merger of BPL (Mumbai) circle, originally bought over by Essar, with the JV and the matter could be referred to an arbitration panel.
News of the meeting triggered fresh speculation about the purpose, but sources in the know said it was a routine Board meeting of the joint venture on its operations.
The Hutch-Essar board is understood to have discussed the financials as well as operations of the company for the third and the last quarter of 2006-07.
The JV, where Hong Kong-based Hutchison Telecom International Ltd (HTIL) has 67 per cent and Indian partner Essar the remaining 33 per cent, is being valued at up to $17 billion by sources associated with various aspirants.
British telecom giant Vodafone and India's second-largest private mobile player Reliance Communications, besides Malaysia's Maxis are reported to have evinced interest in acquiring Hutch-Essar.
The JV has presence in 16 circles with a subscriber base of close to 19 million. Besides, it has obtained Letters of Intent for seven more circles, which would spread the company's presence across India.
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Although the meeting came in the backdrop of ongoing developments for its reported takeover, it is learnt that the purpose of the Board was only to discuss operational aspects.
Sources, however, said the issue of selling Hutch-Essar was put off by the Board as the two JV partners - Hutchison and Essar - are reported to have different strategies.
Both Essar and Hutchison have had sour relations over various issues in the recent past. This was also clear from the fact that the JV could not come out with its Initial Public Offering (IPO) planned long ago.
This also led to a tussle between the two partners over the merger of BPL (Mumbai) circle, originally bought over by Essar, with the JV and the matter could be referred to an arbitration panel.
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The Indian operation has a significant impact on Hutchison Telecom's overall financial performance as these are being considered as one of the most viable ventures.
The battle for its takeover has intensified with a number of global players throwing their hats in the race, especially world's largest GSM service provider Vodafone and Maxis of Malaysia.
Among domestic players, Reliance Communications is reported to have evinced interest in buying over the JV, in line with its announced plans to expand into GSM services.
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