Hindujas have virtually decided to sell their 5.1 per cent stake in mobile company Hutch-Essar to Hong Kong-based Hutchison Telecommunications International Ltd for an estimated value up to $450 million (Rs 20.25 billion). An agreement for this could be announced next week.
The Hong-Kong based firm has pipped Indian partner Essar in the mobile company for the strategic acquisition of Hinduja TMT stake, for which the two sides have now deployed their lawyers and investment advisors to work out finer details.
The deal is being given final touches based on a valuation of the unlisted Indian JV -- Hutchison Essar -- between $8 to $9 billion, done by some national and international investment bankers. The latter include IndusInd investment banking, which is also the advisor for Hinduja TMT, sources said.
The acquisition would take Hutchison Telecommunications International Ltd's direct holding to almost 48 per cent in Hutchison Essar. HTIL is a subsidiary of Hutchison Whampoa. The Ruias of Essar group hold 33.6 per cent in the company.
Hutchison Essar is India's third-ranked mobile operator by virtue of its 18.06 million GSM customers. In comparison, top ranked Bharti Airtel Ltd has 21.86 million GSM customers and second-ranked Reliance Communications Ltd has 21.5 million wireless services customers.
The valuation of Hutchison-Essar is being done keeping in mind the valuation of the GSM businesses of the listed entities Bharti and Reliance Communications.
Sources said this could value Hinduja TMT's holding between $400 to $450 million and a final figure would be arrived at after experts and advisors go through final due-diligence.
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