Tags: Reliance, Vodafone

Sources claim Vodafone has nearly won the deal to acquire Hutchison stake in Hutch

Market sources claim that the UK based telecom giant Vodafone has almost won the battle for control of Hutchison Essar.

The company is rumored to have put in a bid for Hutchison Essar that gave it an enterprise value of $19 billion.

Vodafone has declined to comment on this rumor in the market though it was clear that they were hugely interested in entering the Indian market through Hutch which is the fourth largest mobile service provider in India.

They had earlier made an indicative offer of $16.5bn for Hutchison Essar around Christmas to Hutchison which owns a majority stake in Hutch. Rest of the share is owned by Indian company Essar.

Vodafone’s rivals in the fray include Essar, Reliance Communications and the Hinduja Group.

Essar issued a statement saying: “Vodafone’s offer values Hutchison Essar at around $19bn. This is a good price which reflects the premier position of Hutchison Essar as India’s leading operator. Essar owns 33 per cent of the company and we are delighted that Hutchison and Essar have together created this value. We have been offered by Vodafone to be their partner. We are at the moment evaluating all our options in the best interests of the group.”