The Hindu Business Line : Hutch should go to `natural' owner: Analjit

Even as five major telecom firms are jousting to acquire it, the original Indian promoter of Hutchison Essar, Mr Analjit Singh, said that the company should go to its `natural' owner.

The Chairman and Co-founder of Max India did not elaborate on what he meant by natural owner but said that it should go to the person who is most passionate and competitive.

Mr Singh currently holds 7.58 per cent stake in Hutchison Essar through a joint venture company with Hong Kong-based Hutchison Telecom International Ltd.

"Hutch now and what was founded as Hutchison Max telecom is a world class telecom asset. If the company changes hands, I hope it goes to the natural owner and continues as a world class telecom company," Mr Analjit Singh told Business Line.

Max Group had earlier exited the mobile company, then known as Hutchison Max, by selling its majority stake in tranches.

First STake sale

The first sale happened in 1998 when Max sold 41 per cent stake in the cellular company for Rs 561 crore to Hutchison Whampoa. The sale was considered to be one of the biggest deals in those days even though it may look a little pale compared to subsequent deals that happened in the telecom sector.

For instance Mr Rajeev Chandrashekhar had sold his stake in BPL Mobile for a whopping $1 billion. Max sold the last residual stake of 3.16 per cent in Hutchison Essar for Rs 657 crore to the Essar Group in October 2005.

The equity stake held by Mr Analjit Singh at present in Hutchison Essar is under his personal capacity and is valued at Rs 794 crore according to industry estimates.

The value could be higher depending on the amount quoted by either of the companies in fray to acquire Hutchison's stake.

A probability being talked about is Mr Singh becoming the Indian partner along with Mr Asim Ghosh, Managing Director, Hutchison India, in case Hutch goes to Vodafone.

Max spokesperson, however, said that the Group is now focussed on healthcare business.

More Stories on : Telecommunications | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Northeast monsoon draws to a close

Reliance Comm in race for Hutch-Essar

Hutch should go to `natural' owner: Analjit

BT a step closer to telephony foray

Cement prices likely to harden on rising demand

Be my guest, says Indian Railways

ONGC's stake in Syrian oilfields transferred to arm

Tata Power looking at coal mines abroad; Lanco in talks for Chinese equipment

Govt to identify 25 sites for merchant power plants

A year of consolidation for steel sector

Bajaj Hindusthan net profit rises 36%

TCS begins grooming science grads for career in IT

Market may see uneven but secular rally in 2007: SBI Cap

Call money rates zoom to 12.75%