vegassports-odds.com
vegassports-odds.com July 24, 2017


Vodafone alters strategic course as it merges its India operation with Idea

21 March 2017, 01:05 | Taylor George

Vodafone Group has agreed to combine its Indian unit Vodafone India Ltd with Aditya Birla Group's Idea Cellular Ltd., paving the way for creating the country's largest - and one of the world's biggest - wireless providers.

The combined Vodafone-Idea group would India's largest telecom operation with nearly 400 million customers, or 35 percent market share.

The deal comes as competition in India's wireless market, where a cellular plan can cost less than $3 a month, cranked up even further late past year when Mukesh Ambani, the country's richest man, started offering nearly six months of free mobile services to promote his new carrier.

Telecom sector slipped, with Idea Cellular's stocks plunging by nearly ten per cent on Monday - a day of major merger announcements in the telecom space.

While the two sides will together decide on the CEO, Idea's Himanshu Kapania is expected to steer the combined operations; the choice of chief financial officer will be Vodafone's. The merger, subject to regulatory approvals, will exclude Vodafone's 42 percent stake in Indus Towers.

Birla said the fund for picking up 4.9 per cent of Vodafone stake for Rs 3,874 crore will come from the promoters, and not from Idea.

The merged entity will have around a 406 million subscriber base, replacing the current dominant player Bharti Airtel (around 269 million customers).

West Brom will not ease up after Arsenal win - Robson-Kanu
The last time Arsenal lost four out of five league games was April 1995 - one year before Arsene Wenger arrived at the club. Wenger is under increasing pressure from Arsenal fans to leave the club he has been at for nearly 21 years.

A Rogue One Writer Reveals How the Film Originally Ended
From Lucasfilm comes the first of the Star Wars standalone films, Rogue One: A Star Wars Story, an all-new epic adventure. Also, this gives you a great excuse to re-watch Vader skillfully slaughter a corridor of quickly-unharmed rebels.

Neymar: 'I want to play in England'
Scroll through the gallery at the top of the page to see The Independent's Premier League team of the week. He has won 2 La Liga titles since joining the Catalunya based club.

Will Vodafone's new Idea work?

An amalgamation with Vodafone India is the right step for Idea Cellular and its investors given the synergies at a time competitive pressure is intensifying.

The merger values Vodafone India at 828 billion rupees ($12.4 billion) and Idea at 722 billion rupees ($10.8 billion), the statement said.

Vodafone India will be deconsolidated by Vodafone and reported as a joint venture post-closing, reducing Vodafone Groups net debt by around United States dollars 8.2 billion.

In a note today, Neil Wilson, senior market analyst at ETX Capital said: "The fact that Reliance Jio is to start charging for data from April 1st is good news for rivals (and Reliance shareholders), but even if it shows you can't keep giving it away indefinitely, prices will remain very low and we can still expect its cheap deals to cause heavy losses for rivals".

Colao also said the merger makes possible synergies of United States dollars 10 billion.

It also left competitors scrambling to match the deep pockets of Jio, which is backed by India's hugely wealthy energy-to-chemicals conglomerate Reliance Industries, and caused a rush towards consolidation in the multi-billion-dollar sector. But Vodafone and Idea said they will look to reduce their tower assets exposure, including selling their stakes in the joint venture.



Other News

Trending Now

Katie Holmes says daughter Suri enjoyed visiting 'The Kennedys' set
She spent a lot of time on set as Katie not only starred in the show as Jackie Kennedy Onassis, but directed episode three. Over the past weeks, Katie and Suri have been spending precious time with family, including fun trips to the beach.

Samsung Galaxy Tab S3 Aiming to Take Down Microsoft's Surface Pro Lineup
If you're interested in the Galaxy Book and want to get an idea of how it works, then you can download the manual here . For now, there is no information on how much the smartphone would be priced at or when it will be released in India.

Brexit will begin on March 29th, No 10 reveals
Brexit secretary David Davis said that there is a Fixed Term Parliament Act, which the prime minister intends to honor. Meanwhile, an European Union spokesperson told reporters in Brussels that they are "ready and waiting" for the letter.

Doc Rivers: 'Not Cool' for Cavs to Rest Stars
As for the concerns of broadcast partners, they make a lot of their value back come the playoffs, when guys are not rested . Smith scored 10 points apiece, as Cleveland shot 38.8 per cent and a season-worst 18.5 per cent from three-point range.