CASE STUDY OF VODAFONE HUTCH MERGER

Reasons for Hutch Sale: Realizing the importance of familiarity with the terrain, Sarin has opted to retain Asim Ghosh as the man to head the venture. Hutchison held 52 per cent; Analjit Singh and Asim Ghosh together hold 15 per cent, while Essar holds 33 per cent. Also, it helps Vodafone expand quickly into uncovered areas. Motiwalla, page 25 9.

Vodafone’s main motive in going in for the deal was its strategy of expanding into emerging and high growth markets like India. The Economic Times, 17th April A few weeks later, the Orange brand name replaces Max Touch in Mumbai. It is not intended to illustrate either effective or ineffective handling of a management situation. To insure against such a possibility, Vodafone has reserved the right to abandon the acquisition of the stake if litigation is launched.

Hutchison acquires licence to provide cellular services in Punjab. This case study was compiled from published sources, and is intended to be used as a basis for class discussion. Essar Teleholdings buys Max Telecom Ventures 3.

case study of vodafone hutch merger

There are two main reasons which are responsible for Li Kashing to leave India. Hutchison-Essar Year and Events: However, Vodafone has reportedly reserved the right to walk out of the deal if litigation to thwart the deal is launched.

Acquisition of Hutchinson Essar by Vodafone – Case Enter the email address you signed up with and we’ll email you a reset link. That could be a source of problem.

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case study of vodafone hutch merger

Here a bigger company will takeover the shares and assets of the smaller company. Vosafone one can expect such deals for vendors who are already manufacturing in India. HTIL also wanted to use the money earned through this deal to fund its businesses in Europe. Each of these suitors was lured by the position of Hutch in India.

Technically, therefore, Vodafone can pick up another 22 per cent. Besides, ARPU growth is slowing.

Hutch Vodafone Merger – An Issue of Tax Planning

While during January-DecemberHutch Essar had revenues of Rs 5, crore, it notched Rs 4, crore studh the first half of While Hutch has been adding around 1 million subscribers a month, market leader Bharti has been adding 1.

Whether the UK-based telco overpaid is another question.

case study of vodafone hutch merger

Vodafone’s Foray into India. The immediate advantage caze such an agreement is that it will be possible for both operators to tap the emerging rural market quickly.

In case Essar wants to exit, Sarin points out that it will be paid the same price that Vodafone offered to Hutch.

Hutch Vodafone Merger – An Issue of Tax Planning

Reasons for Hutch Sale: Vodafone’s main motive in going in for the deal was its strategy of expanding into emerging and high growth markets like India. Second, it needs to tap rural India in a big way.

Help Center Find new research papers in: Log In Sign Up. Hutchison held 52 per cent; Analjit Singh and Asim Ghosh together hold 15 per cent, while Essar holds 33 per cent.

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During the same year, Hutch becomes a national brand. Future expansion would have had to be only in the rural areas, which would lead to falling average revenue per user ARPU and consequently lower returns on its investments. But getting there means adding between 1. In the yearthe world’s largest telecom company in terms of revenue, Vodafone Plc Vodafone made a major foray into the Indian telecom market by acquiring a 52 percent stake in the Indian telecom company, Hutchison Essar Ltd Hutchison Essarthrough a deal with the Hong Kong-based Hutchison Telecommunication International Ltd.

The deal with Bharti will also keep capex costs in check for Vodafone. When a company pf to buy out the target firm and target firm agrees ,then the latter involves in exit planning. By then Vodafone expects to control per cent of the market against 16 per cent now.

Essar holds the balance 33 per cent.

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