abhay 0 Report post Posted October 18, 2005 Essar Teleholdings on Tuesday signed an agreement with Max Telecom Ventures to acquire the latter’s 3.16% stake in Hutchison Essar for Rs 657 crore. The price per share in the all-cash deal is Rs 607 per share.Remarkably, Max has made more money by selling its 3.16% stake than when it sold a 41% stake over nine years ago. In April 1998, Max India had sold its 41% equity in the Mumbai circle to Hutchison for Rs 561 crore. As per the deal signed today with Max, the valuation of Hutchison-Essar works out to over $4.5bn. With this acquisition, the Essar Group’s stake in Hutchison Essar will increase from 30.42% to 33.58%. Vikash Saraf, CEO, Essar Teleholdings said, “This acquisition is part of our decision to enhance our stake in the consolidated entity and also reflects the strong relationship between Essar and Hutch.” In the past, Essar Tele has been in talks with the Hindujas too and is eventually expected to buy out their stake too. Essar had acquired the 3.43% stake of Usha Martin Telematics in June this year for Rs 267 crore. Following the exit of Max, the Hutch Essar shareholders now include the Hinduja-controlled Indusind Telecom Network with a 5.11% stake, Kotak Mahindra with a 19.31% stake and Hutchison Telecommunications International (HTIL) with a 42% stake, besides the Essar Group’s 33.58% stake. Today’s sale marks the exit of Max from the joint venture, initially called Hutchison Max Telecom (HMTL). Even after the April 1998 deal, Max India continued to hold a 10% stake in HMTL. On consolidation with other companies acquired by Hutchison, the stake had been reduced to just over 3%. In 1998, the Hutchison Max entity had been valued at around Rs 1,400 crore. Max India had paid about Rs 50 crore in 1995 to acquire the cellular licence for Mumbai. Share this post Link to post Share on other sites
SexyGurl 0 Report post Posted October 19, 2005 (edited) The big question is, what is the source of funds for Essar right now? They bought BPL .... now Max. What's up? Is Essar Steel doing too well .... with the high fortunes of the Steel Industry in general? Or what else? !! -- FinMin / SEBI would do well to try looking behind the veil. Edited October 19, 2005 by bhutes Share this post Link to post Share on other sites
ashoksoft 83 Report post Posted October 19, 2005 yeah ... seems like steel industry sure is booming ... not just in india, but also abroad... check out mittal steels also Cheers Ashok Share this post Link to post Share on other sites
Chirag 5 Report post Posted October 20, 2005 Essar is not jus about Steel... Its grown real big over the years like the TATAs Birlas and Ambanis... Essar is into Shipping,Constructions, Telecom, Power, Oil & Gas, AGRO, IT, Publications, BPO and so much more already!! Its abt a huge corporate which has not come much into the limelight until recent times! Share this post Link to post Share on other sites
abhay 0 Report post Posted October 31, 2005 Hutch-Essar turns to Indian bank consortium for debt for BPL Hutchison Essar is understood to have approached a consortium of Indian banks to raise debt to part-finance its 1.15 billion dollar acquisition of BPL Mobile companies and Essar Spacetel. Hutchison Essar - a joint venture between Hong Kong-based Hutchison Whampoa and Ruias-owned Essar Telecom, had acquired BPL mobile companies in a 1.15 billion dollar mega deal that included Essar Spacetel, which the two promoters were to fund jointly along with external bank borrowing. When contacted both Hutchison and Essar Teleholding officials confirmed the discussions with the consortium but did not reveal the amount of bank finance, saying the deal of 1.15 billion dollar was structured to have a debt component and the transaction may be completed next week. Asked if Essar Telecom is exploring the option of going for private placement of equity with a US-based bank, Essar Telehoding officials said "no". In September this year, Hutchison Essar had entered into an agreement to acquire BPL mobile (Mumbai circle) and BPL Cellular (Maharashtra, Kerala and Tamil Nadu) from the Essar Group for around 1.15 billion USD. In July, the Ruia-managed Essar Group bought a controlling stake in BPL Communications for a consideration of over Rs 4,400 crore. BPL Communications owns a 74 per cent stake in BPL Mobile Communications having operations in Mumbai and 100 per cent ownership of BPL Mobile Cellular with operations in Maharashtra and Goa, Tamil Nadu and Pondicherry and Kerala. Share this post Link to post Share on other sites
SexyGurl 0 Report post Posted November 2, 2005 Essar is not jus about Steel... Its grown real big over the years like the TATAs Birlas and Ambanis... Essar is into Shipping,Constructions, Telecom, Power, Oil & Gas, AGRO, IT, Publications, BPO and so much more already!! Its abt a huge corporate which has not come much into the limelight until recent times! 44503[/snapback] Essar has been very well in limelight ... for their cr*p Management. How to fail in everything you do ... Learn it from Ruias Comparison of Essar to Ambanis is laughable to me .... though I won't raise too much of an eyebrow, on comparison between Tatas and Essar (Ruias). Consider this: 1996: Both Essar and Reliance declare setting up 9 million tonnes refinery at jamnagar .... Reliance project got off to a flying start .... Essar struggled. Then reliance expanded the capacity to 27 million, and still managed to get it running by 1999. Essar: Nothing, except capital blocked in a half-done refinery. The poor project is still half-done. Meanwhile, mukesh ambani announced increasing the capacity from 27 million tonnes to 60 million tonnes by 2009. Essar hopes to get it's lousy 9 million project start by then. All that they have earned is blocked crores of rupees, in a project .... that's yielding nothing. ----- Retail - petroleum sector: Complete disaster for Essar. They are now advising their retail outlets to discourage sale of petrol and diesel, because, their cost of selling imported product is more than the price earned by the outlets. Reliance has earned a 7.7 pc retail share from the PSUs (Indian Oil etc.). -------- Telecom: Was another disaster for Essar, when it operated in the Delhi circle ... till hutch took over the active management of affairs. ----- Steel : Was also running huge losses .... till the current windfall in the Industry, is bringing in some money. I'd surely advise Essar group to rename it logo " A Positive a++itude" to "A f*kking a++itude". It'll better reflect reality. ...................................... Mukesh Ambani's Reliance is so-UnIndian .... that kind of success is hardly seen in any corporate in India .... Tatas, Birlas, Ranbaxy, PSU majors, ICICI, ... sure, many good but nothing really be called an INDIAN CHAEBOL .... except RELIANCE. Infosys, maybe an exception, though. But Reliance is still ahead. But still, it's a sorry state .... Only 2 corporates from India, have really stood up in the world .... rest are unfortunately, still non-entities, as far as the world scales are concerned. Share this post Link to post Share on other sites
abhay 0 Report post Posted November 29, 2005 Max Telecom sells stake EssarMax India Ltd on Tuesday said its subsidiary Max Telecom Ventures Ltd has completed the divestment of its stake in Hutchison Essar Ltd to Essar Teleholdings Limited. Max India Limited has informed the National Stock Exchange that "Max Telecom Ventures Limited, a subsidiary of Max India Ltd, has completed the transaction and divested its stake in Hutchison Essar Ltd, (formerly Hutchison Max Telecom Limited) to Essar Teleholdings Limited." On October 18, Max Telecom had signed an MoU for the sale of its 3.16 per cent holding in Hutchison Essar Telecom to Ruias-controlled Essar Teleholdings for Rs 657 crore. Max India holds 60.8 per cent stake in Max Telecom Ventures. http://economictimes.indiatimes.com/articleshow/1311588.cms Share this post Link to post Share on other sites
linuxguy 0 Report post Posted November 30, 2005 There goes Orange. It wont be a long time before Essar burns down orange too... Share this post Link to post Share on other sites
