Market Manipulation - Lyca offers $123M for Hutch

 From Ceylon Finance Today - By Ishara Gamage

United Kingdom-based mobile virtual network operator Lycamobile has offered US$ 123 million to buy Hutchison Telecom Lanka, sources close to negotiations told Ceylon FT on Friday.

"We were having a memorandum of understanding (MoU) with Hutchison parent company to buy its Sri Lankan operations for US$ 123.Our MoU is still valid and our request for approval from TRCSL-Telecommunications Regulatory Commission Sri Lanka in this regard is still pending without TRCSL having had made a final decision," one of Lyca mobile's local representatives who previously headed a leading government institution under the former regime said on conditions of anonymity. He said that the global accounting giant KPMG and Ernst & Young both valued Hutch at between US$ 122.5 to 123 million.

"Depending on this valuation we have bid US$ 123 for Hutchison Telecom Lanka, If the government is not allowing us to proceed with this deal then we are considering to invest this money in some other country," he said.

He said that Lycamobile intention is to bring some FDIs to Sri Lanka and Hutchison is their worldwide telecoms partner.

Speaking to Ceylon FT recently, Telecommunication and Digital Infrastructure Minister Harin Fernando said that TRCSL has rejected United Kingdom-based mobile virtual network operator Lycamobile proposal to buy Hutchison Telecom Lanka.

"Too many operators are bad for the industry, that is why TRC rejected the Lycamobile proposal," the minister said.

He said that final evaluation report of the Mobitel-Hutchison deal will out shortly and the government special committee will oversee it for final approval.It also learnt that Mobitel's offer price is around the US$ 120 to 140 million price range. "Too many operators are bad for the industry, that is why TRC rejected the Lycamobile proposal," the minister said.

He said that final evaluation report of the Mobitel-Hutchison deal will out shortly and the government special committee will oversee it for final approval.It also learnt that Mobitel's offer price is around the US$ 120 to 140 million price range.