Hindujas have finally settled at $450 Million for their 5.1% stake in Hutch. Earlier I had reporetd that the Hindujas were demanding $600 million valuing Hutch @ $12 Billion. After Hinduja’s selloff, Hutchinson Telecommunications Ltd(HTL) stake in Indian venture is at 48% while Essar groups Ruias stake will be at 33.6%.
Taking a closer look at some of the previosu deals by Hutch and their shady investors, the Hinduja deal appears to be on the higher side. In October 2005, Essar bought 3.2% of Hutch from Analjit Singh at mere $147 Million, almost at half the price at which HTL bought their stake from Hindujas. In March 2006, one of the early investors in Hutch, Kotak Mahindra was forced to sell out his 8.33% at $226 Million in favour of Analjit Singh and Telecom Investments India Limited.
Considering all these murky deals, do you think the management is transperent in its operations ? Not really. Recollect 50% of Hutch subscribers in Haryana had obtained mobile on fake identification. Hutch has accepted the same and hopefully the concerned authorities bring Hutch to book as this is matter of serious national security and can increase the crime rate in Haryana and the NCR.
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