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Telecom industry in India :
Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz
digital GSM technology, offering voice and data services in 23 of
the country's 23 licence areas. It is among the top three GSM mobile
operators of India.
Previous Brands:
Initially, around 1995, the company services were branded Max Touch¸
renamed to Orange in 2000. In December 2006, Hutchison Essar re -
launched the "Hutch" brand nationwide, consolidating its services
under a single identity.
gc EV/EBITD:
gc EV/Revenue:
Based on this ratio too, the Hutch -Essar deal works out to a 20 -
30% premium over its peers .
British Telecom giant Vodafone would have a voting right for only
51.91% equity stake although it was paying for 67% stake. Vodafone
would only have an µeconomic interest¶ in the remaining 15.07%
equity stake. The voting right on this stake is with Analjit Singh,
Asim Ghosh and IDFC. The Essar Group of Ruias would continue to h old
33.02% as the Essar Group he ld 22.09% through a Mauritius based
Investment Company, which was counted as foreign holding in the
company and another 10.93% through a domestic subsidiary company.
The holding in Mauritius based company wa s also the reason for
Vodafone not to increase its stake to more than 51.91% since as per
the then FDI regulations for telecom companies, they could have had
only 74% foreign ownership, hence Vodafone would have to find local
investors for the remaining 26%. Key elements of the deal those we re
likely to play its strengths
gc Future Expansions