Reliance talking with private equity firms for the Hutchison Essar bid

Reliance Communications is the India’s second largest mobile service operator and they are currently in talks with at least four private equity firms to bid for the Hutch operations in India.

British mobile company Vodafone is also interested in this deal and is preparing their offer for Hutch.

Hutchison Essar operations in India have an estimated enterprise value of around USD 14 billion and getting a stake in this company would make any company a major telecom player in the country.

Sources claim that Reliance is in talks with Apax, Blackstone, Carlyle and KKR private equity firms.

Vodafone has received the approval from its board to bid for Hutch. Even the investors have shown interest in this deal with some caution.

Vodafone said in a statement: “The board of Vodafone continues to believe the mobile market in India has great potential and is therefore considering the acquisition of a controlling interest in Hutchison Essar. Such a transaction would be consistent with its stated strategy of seeking selective acquisition opportunities in developing markets. The process is at an early stage and may or may not lead to a transaction.”