Hinduja TMT to buy 1.23 pc stake in Hutch from Sumitomo

Mumbai, Mar 13 (UNI) Hinduja TMT has entered into a share purchase agreement (SPA) with Pacific Horizon, a subsidiary of Sumitomo Corporation, Japan, for the purchase of an effective 1.23 per cent stake in Hutchison Essar Ltd (Hutch).

In a communique to the BSE today, the Company stated that the SPA is for the purchase of Sumitomo's 100 per cent stake in Pacific Horizon, which currently holds a 24.12 per cent of IndusInd Telecom Network Ltd (ITNL), a joint venture between the Hindujas and Sumitomo.

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, stated the communique.

As per the terms of the SPA, Hinduja TMT will purchase 50 per cent of Pacific Horizon up front and the remaining 50 per cent at a later date.

With this acquisition, Hinduja TMT together with its wholly-owned subsidiary InNetwork Entertainment will hold a 91.54 per cent of ITNL corresponding to a 4.68 per cent effective stake in Hutch.

UNI JJ MAZ AW2016