With this transaction Hutch's stake in the JV has come down to 53.1 per cent. "The purchase follows an agreement between Hutchison, Essar and Usha Martin Telematic Ltd, wherein Essar had the option to purchase 3.43 per cent of Hutchison-Essar at the original acquisition price for the Kolkata licence plus a carry cost.
"Essar had an option to acquire this stake until June 30, 2005, which it has exercised. Usha Martin is owned jointly by Kotak and Hutchison," Essar Teleholdings said in a release.
Commenting on the transaction, Vikash Saraf, CEO, 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."
According to sources, the consolidation move by Essar could be seen as a move before the slated public offering by Hutch later this year.
Spanning its operations across 13 circles, Hutch had stated that their operations have been consolidated under a single entity called Hutchison Max Telecom Limited.
Spanning its operations across 13 circles, Hutch had stated that their operations have been consolidated under a single entity called Hutchison Max Telecom Limited.
Hutch had earlier said that all requisite Indian government and regulatory approvals, consent and permissions for effecting the consolidation have been obtained, while stating that this would hasten the company's plans to hit the capital market with a public offering.
According to the shareholding pattern, the shareholders of Hutchison Essar Ltd (Delhi), Fascel Ltd (Gujarat), Hutchison Telecom East Ltd (Kolkata), Hutchison Essar South Ltd (Andhra Pradesh, Karnataka, Chennai, Punjab, UP West, West Bengal) and Aircel Digilink India Ltd (UP East, Rajasthan, Haryana) have transferred all their shares in these companies to Hutchison Max Telecom.
The process has made HMTL the holding company for all the cellular operations of the Hutchison Essar Group.
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