— Photo: PTI

UNLOCKING VALUE: Hinduja Group (India) Chairman, Ashok P. Hinduja (left), addressing a press conference in Mumbai on Friday.

NEW DELHI: Hutchison Telecommunication (India) on Friday acquired the entire 5.11 per cent stake of Hinduja TMT in the unlisted Indian cellular joint venture with the Essar group — Hutchison Essar Ltd. (HEL) — for an all-cash deal of $450 million (Rs. 2,025 crore).

Hutchison Telecommunication (India) is an indirect subsidiary of Hong Kong-based mobile operator Hutchison Telecommunication International.

Hinduja TMT. with its two subsidiaries — InNetwork Entertainment Ltd and Pacific Horizon Ltd — and Hinduja group's Mauritius-based company Kumbat, has entered into a definitive agreement for selling its entire stake in IndusInd Telecom Network Ltd, the special purpose vehicle holding 5.11 per cent of Hutchison Essar Ltd. (HEL), to HT (India) Ltd. for $450 million, the company said.

With this, the Hindujas exit the telecom business. Hindujas' IndusInd Investment Bank acted as the sole financial advisor to the deal.

The deal is based on a valuation of Hutchison Essar at $8-9 billion.

The acquisition would take Hutchison Telecommunications International Ltd's direct holding to almost 48 per cent in Hutchison Essar. The Ruias of the Essar group hold 33.6 per cent in the company.

Ashok P. Hinduja, Executive Chairman of the company, said the board decided to monetise its investment in HEL to unlock the value for its shareholders and accepted the offer made by HTIL. The divestment proceeds would be utilised to explore opportunities in new lines of businesses. — PTI

Right value

PTI reports from Mumbai:

"We got the right exit at the right time and at the right value,'' Hinduja Group Chairman (India) Ashok P. Hinduja said at a press conference in Mumbai.

However, the company Chairman maintained that the group was still keen on acquisitions in the telecom space.

"Telecom is one of the sectors where we will look for the right opportunities,'' he said, though noncommittal on actual plans.

"We are hoping to get $600 million for the stake but valuation changed in the last one month due to market conditions,'' Mr. Hinduja said.

On the deployment of the deal proceeds, he said parts would go into the business process outsourcing (BPO) operations of the company, media ventures and new acquisitions and ventures.

"The next big news will be in the media space where we are close to zeroing in on a strategic international partner,'' he said.

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