Hutch should go to `natural’ owner: Analjit
Even as five major telecom firms are jousting to acquire it, the original Indian promoter of Hutchison Essar, Mr Analjit Singh, said that the company should go to its `natural’ owner.
The Chairman and Co-founder of Max India did not elaborate on what he meant by natural owner but said that it should go to the person who is most passionate and competitive.
Mr Singh currently holds 7.58 per cent stake in Hutchison Essar through a joint venture company with Hong Kong-based Hutchison Telecom International Ltd.
"Hutch now and what was founded as Hutchison Max telecom is a world class telecom asset. If the company changes hands, I hope it goes to the natural owner and continues as a world class telecom company," Mr Analjit Singh told Business Line.
Max Group had earlier exited the mobile company, then known as Hutchison Max, by selling its majority stake in tranches.
First STake sale
The first sale happened in 1998 when Max sold 41 per cent stake in the cellular company for Rs 561 crore to Hutchison Whampoa. The sale was considered to be one of the biggest deals in those days even though it may look a little pale compared to subsequent deals that happened in the telecom sector.
For instance Mr Rajeev Chandrashekhar had sold his stake in BPL Mobile for a whopping $1 billion. Max sold the last residual stake of 3.16 per cent in Hutchison Essar for Rs 657 crore to the Essar Group in October 2005.
The equity stake held by Mr Analjit Singh at present in Hutchison Essar is under his personal capacity and is valued at Rs 794 crore according to industry estimates.
The value could be higher depending on the amount quoted by either of the companies in fray to acquire Hutchison’s stake.
A probability being talked about is Mr Singh becoming the Indian partner along with Mr Asim Ghosh, Managing Director, Hutchison India, in case Hutch goes to Vodafone.
Max spokesperson, however, said that the Group is now focussed on healthcare business.
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