New Delhi: Was Vodafone's $11.1 billion acquisition of the Hutch stake at Hutch-Essar an economical deal? Not really, says global rating agency Fitch. The agency on Wednesday said the deal has not come at a cheap price to UK's mobile giant.
"The acquisition is not cheap (for Vodafone) on valuation basis," PTI quoted Priya Gupta, Fitch Ratings Director Corporates and lead analyst for Indian telecommunications sector, as saying.
Gupta said she expects many more merger and acquisition activity to take place in the Indian telecom industry in future, "including some mega mergers," as various international players are interested in the country's growing market.
"We expect the Indian telecom sector to consolidate further as the market is highly fragmented. Several international players like two Malaysian firms - Maxis and Telekom Malaysia - have shown keen interest in the sector," she said.
Responding to a query if Vodafone, after completion of the acquisition procedure of Hutch-Essar, would consider an initial public offer of its Indian unit, Gupta said: "We hope Vodafone would list its Indian entity on the bourses in the country."
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