Hutchison Max open to acquisitions, mergers

MUMBAI, DECEMBER 30: Fresh from the takeover of Delhi cellular licence for $ 125 million, Hong Kong-based Hutchison Max is scouting for mo...

MUMBAI, DECEMBER 30: Fresh from the takeover of Delhi cellular licence for $ 125 million, Hong Kong-based Hutchison Max is scouting for more acquisitions in India to strengthen its presence. The multinational is already talking to all the Indian promoters who are willing to sell off their stake in their telecom firms.

Hutchison Max, flush with funds following its stake divestment in Orange cellular firm in the United Kingdom, has also identified India as its next investment destination. “Though we’ve not earmarked any particular war chest for acquisitions in India… funds will not be a problem,” company officials told this newspaper.

The company is now looking at the state circles which are having high potential like like Gujarat, Maharashtra and Andhra Pradesh. “As soon as regulatory permissions for our Delhi acquisition comes through, we will start looking at other circles,” officials add. Essar’s stake in Delhi circle is one of the main target of Hutchison. “The deal would be closed as soon as regulatory framework is in place,” official say.

At present, Hutchison has acquired 49 per cent stake in the company from Swiss Comm. As per the present government guidelines, a multinational can not raise its stake in a telecom company above 49 per cent. With both Delhi and Mumbai circles in its pocket, the company is one of India’s largest cellular phone network with over 3 lakh customers. As the traffic between the two cities are the highest, its revenue is expected to shoot up from next fiscal onwards. As of now, the company is not making profits from its India operations. Hutchison Max’s stand on India is completely different from other multinationals who are jettisoning India in favour of their home markets and even China.