Uninor In Talks With Videocon For A Possible Acquisition Deal ?

By May 8th, 2015 AT 12:55 PM

The elongated competition in the Indian telecom market fires up the companies to take different steps to increase market share and customer base. Some of them go for inexpensive offers while others go for lucrative data plans and excellent services. A few cash-rich companies like Uninor look to acquire others like it and grow higher.

Uninor

As per the reports published in Economic Times, Indian telecom company Uninor; a wholly owned subsidiary of the Norwegian firm Telenor has decided to acquire Videocon Telecom to push its market share beyond 5%. One of the sources close to this matter revealed that videocon telecom values itself at more than €1.37 billion or 100 billion rupees.

Arvind Bali, CEO, Videocon Telecom made public that his company was in talks with quite a few international players for a stake sale but refused to take any name. Reporters tried to approach Uninor, but it denied commenting on this issue. Uninor’s customer base was 45.2 million at the end of the February, 2015, which accounted 4.7% market share. At the same time, Videocon’s customer base of 6.9 million customers accounted for not more than 1%. If both the firms come together, Uninor’s market share will easily surpass 5.4% making it 8th largest telecom operator in India.

Uninor is number four in customer market share with over 11% of subscribers in the six operational circles at the end of February 2015. Since March 2014, the company has added over 10 million new subscriptions in its six operational circles. Uninor has over 45.5 million subscribers if this acquisition deal take place it will be a game changer in the Indian telecom industry.

Upon the successful execution of the acquisition, Uninor will present a strong challenge to Tata Docomo, which is currently placed at the 7th place with 6.9% market share.

Bhupendra holds a Post Graduate degree from Christ University. He is an investment banker & trader by profession and a writer by heart.

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