Hinduja TMT to buy 1.23 pc stake in Hutch

Mumbai, Mar 13 (UNI) Hinduja TMT today said it plans to buy 1.23 per cent stake in telecom company Hutchison Essar from an arm of Japanese Sumitomo Corporation, taking its effective stake to 4.68 per cent.

The company informed the BSE it has entered into a share purchase agreement (SPA) with Pacific Horizon, a subsidiary of Sumitomo, for the purchase of an effective 1.23 per cent stake in Hutchison Essar.

The SPA between Hinduja TMT and Sumitomo is for purchase of Sumitomo's 100 per cent stake in Pacific Horizon, which currently holds 24.12 per cent of IndusInd Telecom Network Ltd (ITNL), a joint venture between Hindujas and Sumitomo, the company release said, adding ITNL currently holds a 5.11 per cent stake in Hutch, which translates to Pacific Horizon holding an effective stake of 1.23 per cent in Hutch.

Hinduja TMT buys 50 per cent of Pacific Horizon up front and the remaining at a later date, it said, adding with this acquisition, the company together with its wholly-owned subsidiary, InNetwork Entertainment, will hold 91.54 per cent of ITNL corresponding to a 4.68 per cent effective stake in Hutch.

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