Hutch Sets Floor Price Of $14 Billion For Its 67% Stake
The latest from the race for the Hutch stake is that Hutchsion Telecom International (HTIL) has set a floor price for its stake. It has set a minimum price of $14 billion for its 67 per cent stake in Hutch Essar, according wire reports quoted by CNBC India. So any bid below $14 billion will not be considered.
This will value the 100 per cent of Hutch at $21 billion. According to reports, Hutchison Whampoa has already dismissed an indicative offer of $13.5 billion by Texas Pacific Group and Malaysian operator Maxis (it’s not clear if the $13.5 billion is the enterprise value or the value of the 67 per cent stake.)
Meanwhile, Essar, the Indian partner of Hutchison Essar, has reportedly made an offer to buy the 67 per cent held by HTIL the Indian telco. According to a report in The Economic Times, the Essar group has made an offer of $11 billion, valuing the whole company at $17-18 billion. The offer was reportedly made through the Essar’s advisors, Morgan Stanley and Bear Stearns.
The report further says that the Essar group may have received a line of credit of about $10 billion from Morgan Stanley and Citigroup.
As of now, there hasn’t been any move from the Reliance Communications-led consortium or Vodafone. The other contender is TPG and Maxis combine.
