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Follow UsNEW DELHI - Hong Kong's
ports-to-telecoms conglomerate Hutchison Whampoa Ltd. has bought an
additional 5.11 per cent stake in its Indian GSM mobile business for at
least $550 million, an industry source said.
Shares in Hinduja TMT Ltd.,
which sold the holding in unlisted Hutchison Essar Ltd., jumped 22 per
cent to 444 rupees in a firm Mumbai market.
The purchase would take Hutchison Telecommunications International
Ltd.'s direct holding to 47.4 per cent in Hutchison Essar, valuing the
Indian firm at $10.76 billion.
Hutchison Essar is India's third-ranked mobile operator by virtue of
its 18.06 million GSM customers. In comparison, top-ranked Bharti Airtel
Ltd. has 21.86 million GSM customers and second-ranked Reliance
Communications Ltd. has 21.5 million wireless services customers.
"The deal is through. Both have agreed and it is now a matter of
documentation," the source close to the transaction told Reuters.
The Hindujas have business interests in trading, automobiles, software
development and media.
Hutchison Essar is expected to float a much anticipated initial public
offering this year, and the purchase helps HTIL to further consolidate its
holding in the fast growing company.
India's booming wireless sector, the world's fastest growing mobile
services market, has seen a spate of mergers and acquisitions over the
past two years as soaring growth has attracted overseas carriers and
domestic companies.
More than 4 million customers are entering the galloping market each
month, lured by the cheapest local mobile call rates in the world.
India's diversified Essar group, which has interests in shipping and
steel, holds 33 percent of Hutchison Essar. Another Indian firm, in which
HTIL also has a shareholding, owns more than 19 percent of Hutchison Essar.