Reliance Communications due diligence on Hutch-Essar commences
12 Jan 2007
Mobile services operator Reliance Communications Ltd today commenced due diligence on its smaller rival Hutchison Essar, which it aims to acquire.
The UK''s Vodafone Group, whichwas the first to evince interest in acquiring Hutchison Whampoa''s 67-per cent stake, said on Wednesday it would make a formal offer for Hutchison Essar although a bid was some weeks away.
On Wednesday, Reliance Communications board had re-affirmed its interest in bidding for Hutchison Essar and approved a proposal to raise up to $1 billion in long-term overseas funds.
The takeover target has been valued at around $20 billion. Hutchison-Essar has a 16- per cent market share of the 147-million strong mobile user base in the fastest-growing major mobile phone market in the world.