The document analyzes the merger between Vodafone and Hutchison, which occurred on February 11, 2007, with Vodafone acquiring Hutchison Essar for $11.1 billion, subsequently gaining a 67% stake. Vodafone Group, a major telecommunications entity, sought to expand its presence in the Indian market due to lower telecom density and saturation in western markets, leading to potential growth opportunities. The merger enabled Vodafone to access a large customer base in India and strengthen its position in emerging markets.

1. Good
Morning !!!

2. Vodafone and Hutchison Merger
Analysis
Presented by
Sravani Alur
(158903)

3. Vodafone
• Vodafone Group plc is a British company, with headquarters in London.
• Globally Vodafone ranked fifth by revenue and second in the number of
connections close to 435.9 million as of 2014.
• Owns and operates networks in 26 countries and has partner networks in
over 50 additional countries.
• Second largest mobile network operator in India.
• Market share of 18.42%.
• It has approximately 200 million customers as of August 2016.

4. • Hutchison Asia Telecommunications Limited, founded in 1985.
• Headquartered in Hong Kong.
• Owned subsidiary of Hutchison Whampoa.
• Hutch Essar was a leading Indian telecommunications mobile
operator.
• 23.3 million customers at 31 December 2006.
• National market share 16.4%.

5. Details of the Merger
• Merger date: February 11, 2007
• Acquirer: Vodafone
• Acquired: Hutchison Essar
• Deal Value: US$11.1 billion
• Stake Owned by Vodafone: 67% (52% of Hutchison Essar directly and
15% of put and call options held by MD of Hutchison and other
companies).
• Total company valued at: USD 18.8 billion

7. Financial details of Vodafone and Hutchison Essar
Pre and Post - Merger

8. -60
-40
-20
0
20
40
60
80
2003-04 2004-05 2005-06 2007-08 2008-09 2009-10
Net Profit Ratio % ROI % EPS dividend payout ratio %
Financial Ratios of Vodafone Pre and Post – Merger

9. 0
10
20
30
40
50
60
2003-04 2004-05 2005-06 2007-08 2008-09 2009-10
Net Profit Ratio % ROI % ESP payout ratio
Financial Ratios of Hutchison Essar Pre and Post – Merger

10. Reasons for the merger
• Less telecom density in India
• Growth stage of Indian Telecom Industry
• Saturation in Western Markets
• Saturation of Indian Urban Market

11. Benefits of the merger
• Accelerates Vodafone’s move in Indian market.
• Exposed to a huge market.
• Can develop a strong customer base.
• Increases Vodafone’s presence in higher growth emerging
markets.

12. Vodafone won case against IT Department India !!!

13. References
 http://www.vodafone.com/content/index/investors/investor_information/financial_res
ults.html#
 http://www.thehindubusinessline.com/todays-paper/what-vodafone-will-collect-from-
the-hutch-call/article1680351.ece
 http://amarnaik.com/2009/09/27/vodafone-hutch-deal-i/
 https://www.ft.com/content/0c6cb68a-fdb1-11db-8d62-000b5df10621
 https://en.wikipedia.org/wiki/Vodafone
 https://en.wikipedia.org/wiki/Hutchison_Asia_Telecom_Group

14. THANK YOU !!!