News: Vodafone to acquire majority stake in Hutch

(PTI 11/02/2007) London - UK Telecom giant Vodafone will acquire 67 percent stake in India's fourth largest mobile venture - Hutch-Essar - for $11.1 billion. Announcing the decision for the deal, that puts the enterprise value of Hutch-Essar at $18.8 billion, Vodafone CEO Arun Sarin said, "We are delighted to be deepening our involvement in the Indian mobile market... We have concluded this transaction within our stated financial investment criteria." Vodafone pipped Anil Ambani Group company Reliance Communication, a consortium led by NRI group Hindujas and Indian conglomerate Essar, which has 33 per cent stake in the venture. The winner emerged at the Hutchison Telecom Ltd's board meeting at Hong Kong, convened for considering the four bids for its 67 percent stake put on the block late in 2006. Vodafone has offered to partner Essar, on which the Indian conglomerate said: "We are at the moment evaluating all our options in the best interest of the group."