Hutch Asset Sale Queering The Pitch: Essar, Bharti Show Interest
Thu, 12/14/2006 - 18:30 — Sahad P VThe number of suitors for the Hutch stake in India is growing. The latest to enter the fray is the Indian partner itself - the Ruias of Essar. The Ruias hold about 33 per cent stake in Hutchison Essar, and acording to Business Standard, the Mumbai-based diversified business group is toying with the idea of picking up its majority partner's stake.
Hutchison holds a 52 per cent stake directly, while another 15 per cent is held by Analjit Singh of Max India and Hutch CEO Asim Ghosh together. The stake held by Hutch alone could be valued at around $7-8 billion, which means Essar will have to raise funds or strike partneships to pick up the stake.
There has been interest from global buyout funds like KKR, Texas Pacific Group, Blackstone and even Reliance Communications.
What is interesting is even Bharti Tele-Ventures may look at buying the Hutch stake. "If the Ruias aproach us, then we would think about it," Bharti Chairman Sunil Mittal told CNBC TV18. Which means Bharti can consider buying the Hutch stake only with the concurrence of the Ruias.
The Hutch asset sale is getting interesting with a variety of players entering the fray.
Related:
Now KKR In Talks With Reliance Com To Buy Hutch Assets In India
Blackstone, Texas Pacific, Reliance Com May Consider Acquiring Hutch Assets In India: WSJ
Hutch To Exit India? Will Essar-PE Firm Combine Buy Them Out?
