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Essar to acquire Max's 3.16 per cent in Hutchison Essar

Finance , November 15, 2005

The Essar Group, valued at Rs 200 billion, has entered into an understanding with Max Telecom Ventures to acquire the latter's 3.16 per cent stake in Hutchison Essar for Rs 6.57 billion. This deal will put the valuation of the telecom firm at close to Rs 210 billion. Priced at Rs 607 per share, the all-cash deal will see the Essar Group's holding in Hutchison Essar, its joint venture with Hutchison Telecommunications International, increase from 30.42 per cent to 33.58 per cent. Essar Teleholdings, an investment firm of the Essar Group, will buy the Max Telecom shareholding. The consolidation comes a month after the group signed an agreement to sell BPL Mobile Communications and BPL Cellular to Hutchison Essar.

 
 

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