- Joined
- 3 Nov 2010
- Messages
- 27,849
- Solutions
- 8
- Reaction score
- 38,400
MUMBAI: Vodafone has emerged as the frontrunner for buying out Telenor's operations in India, said two people with knowledge of the matter, as the country's No. 2 telecom company prepares for the coming battle over data customers with rivals Bharti AirtelBSE -1.94 % and Reliance Jio Infocomm.
It's not clear whether the deal will be restricted to the spectrum or include the company as well — the two people cited above differed on this. But they agreed that the airwaves — in the 1800 MHz band that can be used to carry 4G but currently being used to offer 2G by Telenor India — will be valued at roughly $1 billion (Rs 6,800 crore).
Acquiring the Indian unit of the Norwegian company would entail a slightly greater expenditure — the frequencies are really what an acquirer is looking for, given that Telenor's subscription levels are still relatively low after eight years of being in India.
One of the persons said Vodafone may take on debt and try to retain customers in service areas where it would provide a major boost against rivals.
Telenor, which has spectrum in seven areas and operations in six, had about Rs 500-crore debt denominated in the Indian currency, apart from international bonds and dollar debt at the end of 2015. Analysts estimate that to be around Rs 4,000 crore.
A Vodafone spokesman declined to comment on specific queries but said the company was open to options such as spectrum sharing, trading, and mergers and acquisitions.
http://economictimes.indiatimes.com/news/company/corporate-trends/vodafone-emerges-as-frontrunner-for-buying-out-telenors-operations-in-india/articleshow/53070430.cms
It's not clear whether the deal will be restricted to the spectrum or include the company as well — the two people cited above differed on this. But they agreed that the airwaves — in the 1800 MHz band that can be used to carry 4G but currently being used to offer 2G by Telenor India — will be valued at roughly $1 billion (Rs 6,800 crore).
Acquiring the Indian unit of the Norwegian company would entail a slightly greater expenditure — the frequencies are really what an acquirer is looking for, given that Telenor's subscription levels are still relatively low after eight years of being in India.
One of the persons said Vodafone may take on debt and try to retain customers in service areas where it would provide a major boost against rivals.
Telenor, which has spectrum in seven areas and operations in six, had about Rs 500-crore debt denominated in the Indian currency, apart from international bonds and dollar debt at the end of 2015. Analysts estimate that to be around Rs 4,000 crore.
A Vodafone spokesman declined to comment on specific queries but said the company was open to options such as spectrum sharing, trading, and mergers and acquisitions.
http://economictimes.indiatimes.com/news/company/corporate-trends/vodafone-emerges-as-frontrunner-for-buying-out-telenors-operations-in-india/articleshow/53070430.cms
