Anil Ambani has for the first time gone on record on the Hutch acquisition bid. Addressing a press conference in Mumbai on the group company FLAG Telecom's new initiatives, Ambani digressed for a while on his company's plans to acquire Hutchison Essar. I watched the press conference on CNBC TV18 live. Key points below:
Reliance Communications is contstantly looking at opportunities to grow which will include both organic and inorganic opportunities. The plans to bid for Hutch is one such opportunity.Reliance has received funding commitments and line of credit from global banks to fund any corporate moves from our side.
There is no certainty that the deal will go through.Hutch is only one of the ways to create sustainable value for the company.The private equity funds who are supporting the bid include the top ten funds in the world.On valuation - "We have absolute clarity on where value creation starts and value creation ends." (Translation: They know how much price to pay for Hutch, and the $21 billion reportedly demanded by Hutch could be higher.)
--On how do they plan to merge Hutch if they succeed in acquisition: "We will comply with all the department of telecom guidelines on the merger and acquisition".There are no plans currently to offload any stake in Reliance Communications
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