Hutchison seems to have replaced Apple as grist for the rumor mill… There’s been rumors going around for a while about various entities being interested in buying Hutchison’s Indian mobile operations, although so far Hutchison has reiterated that it is not interested in selling, or in selling its European operations for that matter. Now it’s said that Indian telco Reliance Telecommunications will make an offer, and seems to have teamed up with the US equity firms that were part of the rumor last week, that is Carlyle, Blackstone and Texas Pacific Group.
So far Hutchison doesn’t seem to have commented on the rumors, with this article also pointing out that “Reliance serves about 21 percent of the country’s mobile subscribers while Hutchison Essar, a joint venture between HTIL and India’s Essar, has about 17 percent. The deal could help Reliance beat market leader Bharti Airtel, which has 23 percent of subscribers”.
Whether or not Hutchison wants to sell Reliance et al may not have the chance to buy, since minority partner Essar has first right of refusal, and is making deals to ensure it will be able to buy Hutch’s share should the telco decide to sell. Apparently there’s also a clause in the contract that would leave Essar in management control.
Also, for clarity, this article points out that “Hutchison holds a 52 per cent stake, while another 15 per cent is held by Analjit Singh and Asim Ghosh together”.
Considering that India is Hutch’s most successful and profitable 3G operation, a sale there could indicate a willingness to sell its other operators...not forgetting the aborted IPO of its Italian operation earlier this year.
In the UK 3 has cut 130 jobs in its “core functions”, but plans to add 200 more roles to its retail workforce.
Related articles:
--3 Denies Fresh Sale Rumours
--Will Hutchison Sell 3UK?