The Hindu Business Line : Hutch to hold 42 pc direct stake in Indian operations

HUTCHISON Telecommunications International Ltd will hold 42 per cent direct stake and 14 per cent non-controlled and indirect stake in its India-operations when they are finally consolidated.

Hutchison Telecommunications International Ltd, which filed with the US securities regulator today to sell shares in its mobile phone businesses in Asia (including India), Ghana and Paraguay, has mentioned this in its submissions to the regulator.

The company's investments in India include direct and indirect interest in six Indian operating companies and in Kotak Mahindra joint ventures.

There are currently five GSM cellular operations in the country under the Hutchison umbrella.

Hutchison Telecom International holds 48.96 per cent direct stake and 0.35 per cent indirect stake in Hutchison Essar Telecom Ltd; 32.58 per cent direct and 26.65 per cent indirect stake in Hutchison Telecom East Ltd; 49 per cent and 16.5 per cent, respectively in Fascel Ltd; 49 per cent and 25.12 per cent in Hutchison Essar South Ltd and an indirect 59.22 per cent in Aircel Digilink India Ltd.

These are proposed to be consolidated under one company, with Hutchison Telecommunications International holding 42 per cent direct stake and 14 per cent non-controlled and indirect stake.

The current equity cap for foreign investors in telecom in India is 49 per cent, but many Indian operations have more foreign stakeholding through the indirect route.

The subject has generated a lot of debate, but the higher-than-49 per cent stake has been so far tolerated on account of it being "non-controlling" in nature, said telecom analysts.