Hinduja to buy stake in Hutch

Hinduja has entered into a SPA with Pacific Horizon to buy 1.23 per cent stake in Hutchison Essar Ltd.

IT major Hinduja TMT Ltd has entered into a share purchase agreement (SPA) with Pacific Horizon Ltd, a subsidiary of Japanese Sumitomo Corporation to buy 1.23 per cent stake in Hutchison Essar Ltd (Hutch).

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The agreement entailed 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 informed the Bombay Stock Exchange.

ITNL currently held a 5.11 per cent stake in Hutch, which translates to Pacific Horizon holding an effective stake of 1.23 per cent in Hutch, it said.

As per the terms of the agreement, the company would purchase 50 per cent stake in Pacific Horizon up front and the remaining 50 per cent at a later date.

With this acquisition, the company together with its wholly owned subsidiary, InNetwork Entertainment Ltd would hold 91.54 per cent of ITNL corresponding to a 4.68 per cent effective stake in Hutch, it added.