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Hutch buy to jingle all the way for RCL
There are enough operational synergies between Reliance Communications (RCL) and Hutchison Essar (HEL), and the department of telecom’s merger guidelines also seem to favour this entity, an ET study shows. RCL has applied for licences to be a pan-India GSM player.
If it is able to buy Hutch, it will get an instant entry into 16 circles where Hutch operates and where it doesn’t offer services. This will help it cut down on the time needed to enter the market.As per the guidelines, the combined entity can’t hold more than 15 MHz of spectrum in Metro and A category circles and 12.4 MHz spectrum in B & C circles. RCL faces the spectrum regulatory issues only in two circles.
RCL’s GSM arm, Reliance Telecom, offers services in eight circles, of which it overlaps with HEL in West Bengal and Kolkata. HEL is not present in RCL’s other GSM circles — MP, North-East, HP, Bihar, Orissa and Assam.
The scenario will be different if another Indian player like Bharti Airtel enters the fray for Hutch. There are no indications that the New Delhi-based player is planning such a move. Bharti Airtel chairman Sunil Mittal has refuted talk that his company may bid for Hutchison Essar.
The DoT guidelines also stipulate that if an existing player (like Bharti or RCL) buys another operator in the same circle, it will have to limit ownership at 10% or buy the entire 100%. So, if Essar decides not to sell its stake despite a very good offer, then there’s nothing that the two can do.
Also, the market share of the combined entity should not exceed 67% in any circle. However, this will not be the case in any of the 23 circles for RCL.
Idea likely to make pre-IPO placement of Rs 375 crore
Idea Cellular, which is in the process of floating an initial public offer (IPO) is expected to make a pre-IPO placement of shares to promoters, employees of AV Birla group companies and high net worth individuals (HNIs). The private placement could be up to Rs 375 crore, which would be about 15% of the new equity to be issued for raising funds.
The price at which the placement would be done would be at par or higher than the maximum price of the price band for the IPO. The pre-IPO shares will have a lock-in period of one year from the date of allotment. Sources say that the pre-IPO placement would be done to ensure that the shareholding of the promoters is kept at a certain level, following the post-IPO dilution and to also issue shares of Idea Cellular to employees of other AV Birla companies.
Idea Cellular is raising Rs 2,500 crore for meeting its expansion needs. This would be scooped up through issue of new equity shares of the company. The equity would be issued though an IPO and may include a pre-IPO placement.
The fourth largest national GSM mobile service provider, has an authorised share capital of Rs 4,275 crore. Its paid-up share capital of Rs 2,742.5 crore comprises 225.9 crore equity shares of Rs 10 each and preference share capital of 483 redeemable cumulative non-convertible preference shares of Rs 1 crore each.
Idea Cellular is also in the process of raising the total foreign investment limit in the company to 74%. As per the FDI policy for telecom 74% is the maximum equity investment allowed for foreign investors in a telecom company, which includes both direct as well as indirect foreign investment through domestic investment entities.
As of mid-November, 2006 Idea Cellular had a direct foreign investment of 34.85% in the company. However, the total foreign investment including the indirect holding through its shareholders — Grasim Industries, Aditya Birla Nuvo and Hindalco Industries stood at 47.55%. The promoters — Aditya Birla group, which holds 65.15% stake in the company, would continue to be the majority shareholder after the IPO with more than 51% of the equity. Therein the single largest investor Aditya Birla Nuvo, a publicly-listed company, would hold more than 30% stake.
NASA, Google partner for cutting-edge research
NASA's Ames Research Center and Google have signed a Space Act agreement that formally establishes a relationship to work together on a variety of challenging technical problems ranging from large-scale data management and massively distributed computing to human-computer interfaces.
Click Here For Full Article
There are enough operational synergies between Reliance Communications (RCL) and Hutchison Essar (HEL), and the department of telecom’s merger guidelines also seem to favour this entity, an ET study shows. RCL has applied for licences to be a pan-India GSM player.
If it is able to buy Hutch, it will get an instant entry into 16 circles where Hutch operates and where it doesn’t offer services. This will help it cut down on the time needed to enter the market.As per the guidelines, the combined entity can’t hold more than 15 MHz of spectrum in Metro and A category circles and 12.4 MHz spectrum in B & C circles. RCL faces the spectrum regulatory issues only in two circles.
RCL’s GSM arm, Reliance Telecom, offers services in eight circles, of which it overlaps with HEL in West Bengal and Kolkata. HEL is not present in RCL’s other GSM circles — MP, North-East, HP, Bihar, Orissa and Assam.
The scenario will be different if another Indian player like Bharti Airtel enters the fray for Hutch. There are no indications that the New Delhi-based player is planning such a move. Bharti Airtel chairman Sunil Mittal has refuted talk that his company may bid for Hutchison Essar.
The DoT guidelines also stipulate that if an existing player (like Bharti or RCL) buys another operator in the same circle, it will have to limit ownership at 10% or buy the entire 100%. So, if Essar decides not to sell its stake despite a very good offer, then there’s nothing that the two can do.
Also, the market share of the combined entity should not exceed 67% in any circle. However, this will not be the case in any of the 23 circles for RCL.
Idea likely to make pre-IPO placement of Rs 375 crore
Idea Cellular, which is in the process of floating an initial public offer (IPO) is expected to make a pre-IPO placement of shares to promoters, employees of AV Birla group companies and high net worth individuals (HNIs). The private placement could be up to Rs 375 crore, which would be about 15% of the new equity to be issued for raising funds.
The price at which the placement would be done would be at par or higher than the maximum price of the price band for the IPO. The pre-IPO shares will have a lock-in period of one year from the date of allotment. Sources say that the pre-IPO placement would be done to ensure that the shareholding of the promoters is kept at a certain level, following the post-IPO dilution and to also issue shares of Idea Cellular to employees of other AV Birla companies.
Idea Cellular is raising Rs 2,500 crore for meeting its expansion needs. This would be scooped up through issue of new equity shares of the company. The equity would be issued though an IPO and may include a pre-IPO placement.
The fourth largest national GSM mobile service provider, has an authorised share capital of Rs 4,275 crore. Its paid-up share capital of Rs 2,742.5 crore comprises 225.9 crore equity shares of Rs 10 each and preference share capital of 483 redeemable cumulative non-convertible preference shares of Rs 1 crore each.
Idea Cellular is also in the process of raising the total foreign investment limit in the company to 74%. As per the FDI policy for telecom 74% is the maximum equity investment allowed for foreign investors in a telecom company, which includes both direct as well as indirect foreign investment through domestic investment entities.
As of mid-November, 2006 Idea Cellular had a direct foreign investment of 34.85% in the company. However, the total foreign investment including the indirect holding through its shareholders — Grasim Industries, Aditya Birla Nuvo and Hindalco Industries stood at 47.55%. The promoters — Aditya Birla group, which holds 65.15% stake in the company, would continue to be the majority shareholder after the IPO with more than 51% of the equity. Therein the single largest investor Aditya Birla Nuvo, a publicly-listed company, would hold more than 30% stake.
NASA, Google partner for cutting-edge research
NASA's Ames Research Center and Google have signed a Space Act agreement that formally establishes a relationship to work together on a variety of challenging technical problems ranging from large-scale data management and massively distributed computing to human-computer interfaces.
Click Here For Full Article
posted by SY at 12:25 PM
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