Essar hikes Hutch JV stake to over 30%

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."