Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: form 3cd :: cpt :: TDS :: VAT Audit :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment
 
 
« Mergers and Acquisitions »
 Mergers & acquisitions: a lesson in cyber-security complacency and reputational ruin
 Notable Mergers and Acquisitions 12/5: (CNSL)/(FRP) (CX) (FDML)
 What is Triggering the Wave of Mergers & Acquisitions in the Indian Internet Space?
 Oil and gas mergers and acquisitions are finally making a comeback
  Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Mergers and Acquisitions: What’s Happening in the OFS Industry?
 Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Prediction: These 8 Companies Will Get Bought in 2017
 Third Quarter Results Show Continued Strength in Mergers and Acquisitions
 Mergers and Acquisitions Modelling 3 Day Course - 23.03.17 - Research and Markets
 Foiled cross-border mergers and acquisitions

Deal takes Indian M&A story to dizzying heights
May, 26th 2009

By any yardstick, the Bharti-MTN deal, if it goes through, will usher in the next round of the Indian telecom M&A story. At an estimated ticket size of $23 billion, this will be the biggest cross-border deal that India Inc has been involved in, and twice as much as what British telco Vodafone paid to acquire a little over half of Hutchison Telecom Internationals Indian operations in early 2007.

If transactions like that of Hutch-Vodafone were inbound in nature, there were not too many big-ticket outbound telecom deals. Industry trackers point out that size and scale, which are inherent to the telecom industry globally, often hindered the process of an Indian telco going overseas to make that multi-billion transaction. That is now expected to change.

Businesses like Bharti have an outstanding presence in India and it only makes sense to leverage on their capabilities in other markets, said K Balakrishnan, CEO and MD, Lazard India. His firm was involved in some recent key telecom deals like NTT DoCoMos acquisition of a 26% stake in Tata Teleservices for $2.7 billion (Rs 13,070 crore), or AV Birla-owned Idea Cellulars buyout of Spice Communications for Rs 2,700 crore.

Today, Bharti has over 100 million subscribers in India and has a small overseas presence in areas like Seychelles, Jersey Islands and Sri Lanka. The foray into these smaller markets came through a process of license bidding though the MTN deal could change a lot of things. MTN, which has 100 million subscribers across Africa, Middle East and Asia, will catapult Bharti to the top five in the global pecking order. According to another investment banker, Bhartis foray into an emerging market like Africa is important. It helps in the company adopting a de-risking strategy in case the Indian markets start to slow down, he added.

From an outbound perspective, there have been instances of Reliance Communications (RCOM) acquiring Flag Telecom or Tata Communications buying out TGN though these were well under $300 million in terms of deal size.

In one stroke, the Bharti-MTNL could change a whole host of things. India is in the midst of a transition from a hyper to a normal subscriber growth rate and Indian operators will obviously have global aspirations. There will be some more operators looking at acquisitions overseas, Gartners Singapore-based senior research analyst Madhusudan Gupta told ET.

The key will be how well set Indian operators are placed domestically. At the end of the day, it comes down to scale and size before operators decide on going out to other markets, added Mr Balakrishnan.

Last year, RCOM was involved in dialogue with MTN after Bharti decided not to pursue the deal. This signalled the appetite that the Anil Ambani company had for that big overseas buyout. Clearly, the big-bang telecom deal overseas will, for the moment, remain the bastion of the big boys.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions