Friday, June 30 2006 17:52 Hrs (IST) - World Time -

New Delhi: Hutchison Telecommunication (India) today (June 30, 2006) acquired the entire 5.11 per cent stake of Hinduja TMT in the unlisted Indian cellular joint venture with the Essar group for an all-cash deal of US$ 450 million (Rs 2025 crore).

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

Hinduja TMT with its two subsidiaries. In Network Entertainment Ltd & 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 US$ 450 million, the company said in a statement.

With this, 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 the unlisted Indian JV Hutchison Essar between eight-nine billion dollars.

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, the Executive Chairman of the Company said, the Board decided to monetize its investment in HEL to unlock the value for its shareholders and accepted the offer made by HTIL.

The proceeds from the divestment of this stake sale will not only help the company to aggressively pursue its growth path in its businesses but will also enable it to explore opportunities in new lines of businesses.