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Hutchison to buy 95% in Usha Martin

Hong Kong conglomerate Hutchison Whampoa Limited could pick up a 95 per cent stake in Indian mobile phone service provider Usha Martin Telekom Limited, a business daily said on Saturday.

The newspaper said that since foreign investors were not allowed to own more than a 49-per cent stake in domestic telecom firms, the Hutchison group had sought special permission from the Indian government to make the purchase.

A final agreement on the deal is expected in a week, said the newspaper.

"It will take another few days to close the deal and the details will be disclosed only then," Prashant Jhawar, co-founder of Usha Martin Telekom Limited, told the newspaper.

A 95 per cent stake in Usha Martin Telekom, which provides mobile services in the eastern city of Calcutta, has been valued at Rs 7 billion.

The Hong Kong conglomerate operates in India through Hutchison Telecommunications International, whose venture, Hutchison Max Telecom Limited currently operates mobile phone services in Bombay.

It also owns 49 per cent of New Delhi-based Sterling Cellular Limited.