iWorld
Airtel, Vodafone lead market; UP East adds max subs
MUMBAI: Witnessing a healthy growth in telecom penetration, the GSM subscriber base in the country grew to 801.81 million in November 2016. COAI, the association of mobile telephony service providers in the country, which released the November GSM subscriber base numbers, has said the number of GSM subscribers witnessed a jump of 10.18 million as compared to the previous month.
Telecom industry’s steady growth was recorded in net subscriber additions from 2.09 million in August to 10.18 million in November.
Amongst the telecom companies, Bharti Airtel continued to hold on to the pole position in November, adding another 1.08 million additional subscribers during the month to take its total subscriber base to 263.35 million mobile subscribers. Closely followed by Vodafone with 202.79 million subscribers and Idea Cellular with 187.68 million subscribers. With 32.84%, Bharti Airtel owns the maximum market share in the industry.
The report, which also assesses the growth of mobile subscribers across various circles in India said, UP East added the maximum number of subscribers (73.82 million) in November and Idea added the maximum number of subscribers (7.43 million) in November.
Talking about the growth in the subscriber base, COAI director-general Rajan S Mathews said, “The telecommunication industry has again posted a good growth for the month of November 2016. It is heartening to see that the industry is showing signs of a robust growth and we have again moved ahead in ensuring complete connectivity at all levels. Telecom companies have been contributing towards fulfilling the government’s vision of Digital India since beginning and we will continue bridge the digital divide for a fully connected and digitally empowered India.”
Speaking about the impact made by the telecom industry, he added, “We are an enabler of comprehensive growth. The industry has also ensured that the government’s plans reach even the farthest corners of the country and everyone is equally benefitted from the digital revolution.”
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
