The great Indian Telecom M&A is finally unfolding. Before we go into the Indian Telecom M&A, I’d like to elaborate about a great Chairman Hindustan Unilever [then Hindustan Lever Ltd] had in the 1990s – S M Datta. That was precisely the time when my tryst with Equity Markets had began even though I was still in High School. I was an avid reader of Business Today & Business India and was deeply influenced by HLL Chiarman Mr. Datta. During his tenure he masterminded the M&A for all the companies Lever Brothers wanted to takeover in India using HLL. Mr. Datta got Brooke Bond India & Lipton India merged separately and finally HLL tookover the combined entity, totally 6 during his tenure and also laid down the future roadmap for Levers in India. Drawing parallel, I’m wondering if Mukesh Ambani wants to do the same in Telecommunications ? Let Reliance Communications takeover MTS Sistema. Meanwhile RJio will takeover Videocon Telecom at some point as I have already elaborated about their spectrum synergy. Later RJio takes over RCom and all the companies will hive off their Telecom Infrastructure assets creating a giant Telecom Services & Infrastructure company. I can’t be sure of RCom & RJio merger in future but corporate moves by Anil Ambani point in that direction – Anil gets into Finance, Power, Defence & Infrastructure exiting Telecom where he hasn’t been able to carve a niche for himself despite driving the business for a decade. Mukesh & Akash Ambani’s Big Plans for Reliance Jio Infocomm are extensively covered here. Continue reading MTS Sistema Merger with Reliance Communications – Mukesh Ambani Master Stroke or 4G LTE Play ?
Asia’s Leading Innovative Telecom Service provider, NTT DOCOMO has announced its plans of exercising the option of selling its entire 26.5% stake in Tata Teleservices. The price is going to be higher of 50% of the acquisition price, which amounts to INR72.5bn, or fair market price.
DOCOMO’s potential exit again highlights the widely held view of ‘implicit consolidation’ in the market, whereby smaller operators aren’t able to compete, and are still Continue reading Corruption & Congress’ 2G Spectrum Scam Cited as Reason for NTT DoCoMO’s Exit from India
Now that we have a clear Spectrum Policy (Auction is the only way), Mergers & Acquisition is something that will come in the limelight along with interconnect fees as the new Government takes over. In this backdrop, incumbent Vodafone is already exploring Merger / Acquisition with Tata DoCoMo which is strategically the best fit in the new entrants. Continue reading Tata DoCoMo a Strategic Fit for Merger / Acquisition by Vodafone