Hutchison to buy Hinduja stake in Essar JV

Hindujas have virtually decided to sell their 5.1% stake in mobile company Hutch-Essar to Hong Kong-based Hutchison Telecommunications International (HTIL) for an estimated $ 450 million (Rs 2025 crore), an
agreement for which could be announced next week.

The Hong Kong based firm has pipped Indian partner Essar in the mobile company for the strategic acquisition of Hinduja TMT stake, for which the two sides have now deployed their lawyers and investment advisors to work out finer details.

The deal is being given final touches based on a valuation of the unlisted Indian JV - Hutchison Essar - between $ 8-9 billion, done by some national and international investment bankers, including IndusInd
investment banking, which is also the advisor for Hinduja TMT, sources associated with the process said.

The acquisition would take HTIL's  direct holding to almost 48% in Hutchison Essar. HTIL is a subsidiary of Hutchison Whampoa. The Ruias of Essar Group hold 33.6% in the company.