AV Birla Group Chairman Kumar Mangalam Birla, which is 'in talks' with…
작성일 23-07-14 22:05
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작성자Clinton 조회 7회 댓글 0건본문
AV Birla Group Chairman Kumar Mangalam Birla, which is 'in talks' with Vodafone
Global telecom giant Vodafone confirmed on Monday that it is currently in talks to merge its Indian subsidiary with Aditya Vikram Birla Group company Idea Cellular in an all-share deal that would create the biggest telco in the country.
The move will enable the combined entity to take head on Mukesh Ambani-run Reliance Jio which has unleashed a fierce price war with its introductory offer of free voice and data services that threatens to disrupt the market.
This has forced the country's three biggest operators - Bharti Airtel, Vodafone and Idea - to slash prices and accept lower profits.
Jio's aggressive strategy has forced Vodafone to take a $5 billion write-down in its Indian business, vk02.io prompting Chief Executive Vitorio Colao to say that the market would have to consolidate.
Vodafone has gone through a tumultuous ride since it entered India in 2007, with fierce competition and a raging tax battle with the government turning uncertain its business which contributes more than 10 per cent of its revenues and profits.
Free data: Vodafone has stepped up the price war in the telecom sector, to stave off the challenge from Reliance Jio
'Any merger will be effected through issuance of new shares in Idea to Vodafone and would result in de-consolidation of Vodafone India,' the company said.
As with some other joint ventures of Vodafone, a merger would enable the firm to deconsolidate the business, leaving it as a shareholder benefiting from dividend payments.
Vodafone also said on Monday that a deal with Idea would not include Vodafone's 42 percent stake in Indus Towers, the radio masts owner created by Bharti, Vodafone and Idea.
A Vodafone-Idea combined entity would have 43 per cent market share by revenue as against the 33 per cent of Bharti Airtel currently and 13 per cent for Reliance Jio by 2018-19, according to a CLSA report.
The dispute is over Reliance Jio's offer of free voice and data services beyond the 90 days permitted for promotional offers (photo for representation only)
Vodafone did not share the details of the potential deal, saying, there is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction.
In a BSE filing, Idea Cellular said it constantly evaluates various opportunities to enhance stakeholders' value.
As part of the exercise, the company has been in preliminary discussions with Vodafone, it added.
Idea emphasised that the fundamental premise of preliminary discussion is based on equal rights between Aditya Birla Group and Vodafone in the combined entity.
Global telecom giant Vodafone confirmed on Monday that it is currently in talks to merge its Indian subsidiary with Aditya Vikram Birla Group company Idea Cellular in an all-share deal that would create the biggest telco in the country.
The move will enable the combined entity to take head on Mukesh Ambani-run Reliance Jio which has unleashed a fierce price war with its introductory offer of free voice and data services that threatens to disrupt the market.
This has forced the country's three biggest operators - Bharti Airtel, Vodafone and Idea - to slash prices and accept lower profits.
Jio's aggressive strategy has forced Vodafone to take a $5 billion write-down in its Indian business, vk02.io prompting Chief Executive Vitorio Colao to say that the market would have to consolidate.
Vodafone has gone through a tumultuous ride since it entered India in 2007, with fierce competition and a raging tax battle with the government turning uncertain its business which contributes more than 10 per cent of its revenues and profits.
Free data: Vodafone has stepped up the price war in the telecom sector, to stave off the challenge from Reliance Jio
'Any merger will be effected through issuance of new shares in Idea to Vodafone and would result in de-consolidation of Vodafone India,' the company said.
As with some other joint ventures of Vodafone, a merger would enable the firm to deconsolidate the business, leaving it as a shareholder benefiting from dividend payments.
Vodafone also said on Monday that a deal with Idea would not include Vodafone's 42 percent stake in Indus Towers, the radio masts owner created by Bharti, Vodafone and Idea.
A Vodafone-Idea combined entity would have 43 per cent market share by revenue as against the 33 per cent of Bharti Airtel currently and 13 per cent for Reliance Jio by 2018-19, according to a CLSA report.
The dispute is over Reliance Jio's offer of free voice and data services beyond the 90 days permitted for promotional offers (photo for representation only)
Vodafone did not share the details of the potential deal, saying, there is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction.
In a BSE filing, Idea Cellular said it constantly evaluates various opportunities to enhance stakeholders' value.
As part of the exercise, the company has been in preliminary discussions with Vodafone, it added.
Idea emphasised that the fundamental premise of preliminary discussion is based on equal rights between Aditya Birla Group and Vodafone in the combined entity.
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