Bharti buys back Vodafone's 4.99% stake in Bharti Airtel for about $ 1.4 Bn

Bharti group company has acquired 4.99% direct holding in Bharti Airtel from Vodafone. With this, the Bharti group companies had enhanced their voting interest in Bharti Airtel to over 50%.

Earlier this year, Bharti-Vodafone had reached buyback pact in February. Bharti had said it would buy 5.6% from Vodafone for $ 1.6 billion. Based on this price, Bharti will have to fork out $ 1.42 billion (Rs 5,600 crore) for the 4.99% stake. Bharti has 18 months to complete buyback.

Vodafone, which bought a 67% stake in Hutchison-Essar recently, had to reduce its stake in Bharti Airtel from 10% to conform to telecom guidelines.

Last month, Temasek Holdings signed an agreement under which it has the option of acquiring a 4.99% stake in Bharti Airtel from the Bharti group. Based on that day’s market price, this holding is equivalent to Rs 8,200 crore.

The Bharti group companies will now hold 50% in Bharti Airtel, while Singtel will control over 31%, Vodafone 5% and Temasek 4.99%. The rest is held by the public and other institutions.




Hindalco buys out 55% stake from Alcan in $ 1 Bn Utkal alumina project, transaction expected to be completed by end of the year

Aluminium major Hindalco will buy a 55% stake in the Utkal project from its joint venture partner Alcan. The transaction is expected to be completed by the end of the year. The $ 1 billion Utkal project was to develop bauxite mines, and set up an alumina refinery in Orissa; but it has been facing local opposition.

Hindalco & Alcan were to invest $ 1 billion in the project. But Alcan has been looking to exit the project, which is in the engineering phase. Hindalco had the first of refusal, which it is exercising.



Tatas refuse to comment, M&M says it's interested - will Land Rover & Jaguar find an Indian in the driver's seat ?

Will India bail Ford out? Both Tata Motors & M&M are said to be eyeing Ford's loss making businesses - Land Rover and Jaguar. Jaguar and Land Rover - one stands for power and speed, and the other, for pure strength. Are they attractive enough for Tata Motors to buy them?

Tata is reportedly evaluating a possible bid for these brands, which, analysts say, are valued together at $ 1.5 billion. But Tata Motors' MD Ravi Kant's silence does little to make matters clear.

Tatas stays silent. But rival M&M, which could have an interest at least in Land Rover, says the brand is attractive. Even so, it will not help Mahindra become an independent global SUV brand. Moreover, Land Rover, which is about 6 times as big as M&M, makes might simply be unaffordable.

Pawan Goenka, President, Automotive Sector, M&M said,” I don't know what's on offer. Whether it's the whole brand, or some products or what plants are being offered. I can't say if it's a strategic fit or not. Mahindra is a SUV brand and Land Rover is an SUV brand. So, the two brands have something where synergy is possible. But having said that, it's a big company.”

But will it make sense for Tata Motors, which is trying to grow in Europe? And even if it makes sense, will it be worth its while to pursue this opportunity? That's what company officials could be deliberating now especially when Tata Motors is putting its weight behind the Rs 1-lakh car project.




Reliance Communication unlocks value in Tower Co; Sells 5% stake valued at Rs 1400 Cr, Tower business valued at Rs 27,000 Cr ($ 6.7 bln)

Reliance Communication has unlocked value in the Tower Company by selling a 5% stake.The tower business (RTIL) has Rs 27000 cr in equity valutaion ($ 6.7 billion). This translates into value of the tower company at Rs 135/sh for shareholders. The 5% equity placement is being valued at Rs 1,400 crore. RTIL will have an EV of $ 9 billion or Rs 36000 cr by March end.

Reliance Communication now holds 95% stake at Rs 26000 crore ( translates to Rs 127 per share). Reliance Communication will have Rs 1200 crore capital gains ( translates to 5.8 per share).

Anil Ambani says that they need more infrastructure expansion to sustain 7 million subscriber addition/mth. Also the future growth is seen from 'C' circle. A minimum investment of Rs 40,000 crore is seen for 3G & 4G services.

Ambani added that there is a need of minimum of 15,000 new sites for 3G and 4,000 new sites for 4G. They currently have 14000 towers, which will increase to 23000 towers in next 6 months.





Looking at 15% QoQ revenue growth, to chart out Pan-India plans: Spice Communication

Dilip Modi of Spice Communication said that the company is waiting for government to clarify Spectrum policy. After that only, the company will chart out Pan-India plans. At present, the company is focussing on extending coverage to 2000 towns in Punjab and Karnataka.

He further said that the average revenue per user is at Rs 350 in Punjab and at Rs 400 in Karnataka. The company is looking at 15% QoQ revenue growth. PAT is positive in CY08.

Today, Spice Communication listed at Rs 57.55 against issue price of Rs 46.

Current Debt of company is at Rs 1000 crore which the company is expecting to come down to Rs 700 crore. Company has decided to pay off the debt using 50% of the IPO funds and is seeing Debt-Equity ratio going forward at 1:1.

Combined market share of the company is of 15% while market share in Punjab is in mid 20s. The company is expecting market share to cross 20% in FY09.