Consolidating its position in the Hutchison-Essar telecom joint venture, Essar Teleholding increased its stake to 30.42% in the JV by buying out 3.43% stake held by a Hutch subsidiary Usha Martin Telemetics for Rs 267 crore. Hutch's stake in the JV has now come down to 53.1%."The purchase follows an agreement between Hutchison, Essar and Usha Martin Telematic wherein Essar had the option to purchase 3.43% of Hutchison-Essar at the original acquisition price for the Kolkata licence plus a carry cost."Essar had an option to acquire this stake till June 30, 2005, which it has exercised. Usha Martin is owned jointly by Kotak and Hutchison," Essar Teleholdings said in a release.Vikash Saraf, CEO of Essar Teleholdings, said: "This acquisition is part of our decision to enhance our stake in the consolidated entity, and also reflects the strong relationship between Essar and Hutch."
