Hutchison consolidates mobile biz

NEW DELHI: The Indian mobile unit of Hutchison Telecommunications International Ltd. has bought the equity of its Indian partners in several subsidiaries and issued shares to them in the merged entity, a source confirmed.

"The consolidation has been completed and all holdings are now in a merged entity -- Hutchison Max Telecom Ltd (HMTL)," the industry source, close to the transaction, informed.

The Essar group, which also has interests in shipping and steel, would own 26.42 percent of HMTL, the Kotak Mahindra group will have a 22.97 percent stake and the Hinduja group will get a 5.11 percent holding and Max India Ltd. will enjoy a 3.16 percent stake. Hutchison Telecommunications International Ltd. (HTIL) would own the rest, 42.34 percent in HMTL.

Officials at HTIL were not immediately available for comment.

HTIL, India's fourth largest mobile services provider, plans an initial public offering for its Indian wireless business that had 7.179 million users at the end of December. The offering is likely to be floated this year.

HTIL is one of the most aggressive players in India, home to the world's fastest growing major mobile market. The country has more than 48 million wireless customers and the market is widely expected to cross 80 million by Dec 2005.

There is heavy demand for mobile services in India where less than five in 100 people own a mobile handset compared with more than 25 in China.

HTIL competes mainly with larger rivals Bharti Tele-Ventures Ltd., 28 percent owned by Singapore Telecommunications Ltd., state-run Bharat Sanchar Nigam Ltd. and the Reliance and Tata business groups in the galloping market.