Hutch equity holding to be made public

After being kept under wraps for years, the equity structure of Hutchison Essar could be made public.

This comes following the Essar group's letters to the Prime Minister's Office and the department of telecommunications and also the recent equity changes, which may see the DoT asking the company to reveal details of its shareholding.

When contacted, DoT officials said they would examine the letter sent by the Essar group seeking clarification from the government on whether any indirect or direct equity changes in a telecom service licence holder in the country needed approvals or clearances from the authorities concerned.

At a later stage, if the government felt that the shareholding pattern deserved a second look, it could ask Hutchison Essar to furnish details. However, it was too early to say if the DoT would certainly intervene, the officials added.

Essar's letters come in the wake of an overseas deal that materialised last year when Egyptian telecom company Orascom got an indirect entry into Hutchison Essar as a result of its acquisition of a 19.3 per cent stake in Hong Kong-based Hutchison Telecom International Limited.

Sources revealed that while the government had been informed about the Orascom deal, there had been no changes in the joint venture with regard to management or operations till date.

Essar executives said the company was in the final stage of finalising the acquisition of Hindujas' 5 per cent stake in the joint venture, which will hike its holding to 38 per cent and maintain its status as the single largest shareholder in the enterprise.

Hutchison has also reorganised its structure by establishing a close strategic partnership with Max India Chairman Analjit Singh as well as Hutch Essar MD Ashim Ghosh's indirect shareholding, which is held through Telecom Investment India (TII).