Hutchison likely to exit India | india | Hindustan Times
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Hutchison likely to exit India

Telecom major Vodafone is considering buying a controlling stake in the JV of the company estimated at $17 billion.

india Updated: Dec 22, 2006 16:08 IST

Hutchison Telecommunications International Ltd is likely to inform that it would exit the Indian market, where it is present through a joint venture Hutch-Essar.

The move is expected in the backdrop of world's largest telecom player Vodafone's announcement that it could buy a controlling stake in the JV company, which is being valued up to an estimated $17 billion (nearly Rs 76,000 crore).

"HTIL... has been approached by various potentially interested parties regarding a possible sale of its equity interest in Hutchison Essar Limited, the company's mobile operations in India.

"No agreement in respect of such possible sale has been entered into up to today's date. The company reiterates that there is no assurance that a sale may result from these approaches," HTIL said in a statement.

Meanwhile, Malaysia's Maxis Communications, where Hutch-Essar's Deputy Managing Director Sandeep Das has recently takenover as CEO, is understood to have informed HTIL about its intention to acquire the Indian venture, possibly at about $14 billion.

Maxis made its move earlier this week, but there was no official confirmation with its spokesperson declining to comment on speculation.

It was, however, not clear if Maxis would continue to be in the fray and increase the valuation in the wake of the announcement by Vodafone, which is expected to be pitted against Reliance Communications, an Anil Ambani group company, that has reportedly made arrangements for raising $15 billion from the market for the buy.