Essar may buy IDFC, UTI stakeBipin Chandran & Joji Thomas Philip / New Delhi March 08, 2006Company plans SPV to buy IDFC, UTI's 5.83% equity in Hutchison Essar.The Essar Group plans to acquire the 5.83 per cent equity held by the Infrastructure Development Finance Company and the UTI Investment Advisory Services in its telecom joint venture, Hutchison Essar, through a special purpose vehicle.This will take the Essar Group's total holding in Hutchison Essar to 33.01 per cent. The largest shareholder in the company is Hong Kong-based Hutchison with 42.35 per cent stake. This would be second equity restructuring taking place in Hutchison Essar in less than a week. Kotak Mahindra Bank's subsidiaries, associates and promoter group companies on Wednesday sold 8.3 per cent stake in Hutchison Essar for Rs 1,019 crore to Analjit Singh, Hutchison's original joint venture partner for telecom business in the country.According to an application filed with the Foreign Investment Promotion Board, the Essar Group proposes to set up a $400 million special purpose vehicle called Essar Comvestment Ltd (ECVL), which will buy the equity held by the two Indian financial institutions. An Essar spokesperson refused to comment on the application.
