Hutch reorganises Essar ahead of IPO

2 Mar 2006

Hutchison Telecommunications International (HTIL) is to hold an initial public offering (IPO) of shares in its Indian mobile operator Hutchison Essar later this year. HTIL is restructuring the ownership structure of Hutchison Essar ahead of the IPO and yesterday India’s Kotak Group sold its entire 8.33% holding in the company to two HTIL partner companies, Telecom Investments India and a company owned by Analjit Singh, for INR10.19 billion; Singh is the former founder and chairman of Essar’s predecessor, Hutchison Max Telecom. Following the restructuring, HTIL will hold a direct 42.34% stake in Essar, as well as a minority indirect stake through joint ventures with other shareholders. The joint venture companies will reorganise their aggregate ownership of 19.5% of Essar into a single holding company.