Hinduja TMT divests stake in Hutchison Essar

MUMBAI:
Hinduja TMT Ltd has announced that the company with its two wholly owned
subsidiaries namely InNetwork Entertainment Ltd (INEL) & Pacific Horizon Ltd
(PH) and Hinduja Group's Mauritius based company Kumbat have, pursuant to
approval by the company board on June 30, 2006, have entered into a definitive
agreement for selling their entire 100 percent stake in IndusInd Telecom Network
Ltd, an SPV holding 5.11 percent of the issued share capital of Hutchison Essar
Ltd (HEL), to
Hutchison Telecommunications (India) Ltd (HT India), an indirect wholly
owned subsidiary of the Hutchison Telecommunications International Ltd for an
aggregate all cash consideration of $ 450 million. IndusInd Investment Bank
acted as the sole financial advisor to the deal.



Prior to this sale, the company completed the acquisition of the entire
shareholding of Sumitomo Corporation in Pacific Horizon due to which the
company's effective shareholding in HEL increased from 3.45 percent to 4.68
percent.



Commenting on the sale Ashok P Hinduja, Executive Chairman, of the company said,
a board decided to monetize its investment in HEL to unlock the value for its
shareholders and accepted the offer made by HTIL. The proceeds from the
divestment of this stake sale will not only help the company to aggressively
pursue its growth path in its businesses but will also enable it to explore
opportunities in new lines of businesses.



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