WSJ: The much-anticipated listing of Hutchison Telecom‘s Indian phone business — which had been expected on the Bombay stock exchange this year — could be postponed until 2006, the paper reported quoting analysts. The listing has been pushed back once because of regulatory concerns. Postponing the IPO until next year also could deprive the company of cash needed for acquisitions in India’s fast-growing, quickly consolidating market.
“An IPO would have helped them raise funds for expansion” and catch up with larger rivals, says Francis Cheung, head of telecommunications research for CLSA Asia-Pacific Markets in Hong Kong. Hutchison ranks as the fourth-largest wireless provider in India, with about 16% of all subscribers.
In April, Hutchison Telecom officials said its Indian operation, called Hutchison Max Telecom, likely wouldn’t meet its initial June 2005 IPO target date, as the company was still seeking clarity from Indian officials about a recent change in foreign-ownership rules for telecom-services companies. Hutchison Telecom has a 53% stake in Hutchison Max, but could be allowed to own as much as 74% under rules approved earlier this year
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