Hinduja TMT acquires Sumitomo stake in Hutch-Essar

Hinduja TMT acquires Sumitomo stake in Hutch-Essar

Hinduja TMT has reportedly increased their stake in the wireless operator Hutchison Essar Company from 3.45 per cent to 4.68 per cent. The company acquired the stake of Sumitomo Corp of Japan in Hutch-Essar to enhance their own stake in the company.

Hinduja TMT entered into a share purchase agreement with Pacific Horizon Ltd, a subsidiary of Sumitomo and acquired 1.23 per cent stake in Hutchison Essar (Hutch-Essar). They have however refused to release details on the consideration paid for this stake.

However, HTMT has not expressed their desire to increase their stake in this mobile service provider operating in India. Nevertheless, increasing the stake in Hutch-Essar would give HTMT greater capability to negotiate on price with whoever is ready to buy the stake.

This acquisition means that HTMT, together with its wholly owned subsidiary InNetwork Entertainment Ltd, will hold 91.54 per cent of ITNL, which currently holds a 5.11-per cent stake in Hutch Essar.