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DoT Approves Vodafone-Idea Merger, Tata Motors, Soft Bank, Xiaomi and Tencent et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jul 10, 2018 12:54 PM 2 min read

End of Day Wrap-up (Tuesday / July 10, 2018) #DoT #Vodafone #Idea #PrivateEquity #KraftHeinz #IT #Cairn #TataMotors #SoftBank #Altaba #Xiaomi #Tencent #HongKong #Transfin

Editor's Comment: Dept of Telecommunication gives a nod to Vodafone-Idea Cellular merger over certain financial guarantees. They will pay the government INR7,200 crores as a one-time spectrum charges. DoT has asked for a bank guarantee from Idea cellular worth INR3,342 crores and Vodafone to pay INR3,926 crores in cash.


Private Equity Funds BlackRock and Carlyle in race with companies like Abbott, ITC, Wipro Consumer care and Zydus Wellness to acquire Kraft Heinz India’s consumer food unit. Sale will lead to acquisition of brands like Complan, Glucon D, Nycil etc. Expected value of deal is expected around $1bn.


Cairn loses $216 million Vedanta stake as income tax dispute with India deepens. I-T department has sold off shares of Vedanta worth $216 million, as part of dispute with Cairn Energy. It has further frozen dividends paid to Cairn by Vedanta worth $155 million and has also confiscated $234 million tax refunds due to the company.


Tata Motors plans to invest $1 billion in passenger vehicles over next 3 years as a part of its Tata turnaround 2.0 strategy. This includes a new manufacturing line in Pune and additional modular platforms in Gujarat, as they look churn out a dozen more models.


SoftBank Corp to buy $2 billion worth of shares held by US firm, Altaba Inc in Yahoo Japan. Softbank Corp to buy these shares via a tender at 360 yen/share. This means Softbank’s stake will rise from 42.95% to 48.14%.


Xiaomi joins Tencent among Hong Kong’s 10 most valuable companies with $54bn market cap. Xiaomi has also been included in the FTSE China A50 index and the Hang Seng Composite Index. Xiaomi bounced back from its first day drop in trading.