Wednesday, April 11, 2007

Ghosh, Singh can modify deal with Vodafone

Hutchison Telecom International (HTIL) and Vodafone have worked out a revised deal with Max India chairman Analjit Singh and Hutchison Essar (HEL) CEO Asim Ghosh on the valuation of their holdings in HEL.

As per the deal, which has been communicated to the government, the shares of Mr Singh and Mr Ghosh have been valued at a minimum of $226.25 million and $164.51 million, respectively, subject to HEL’s equity valuation being $25 billion or less.

In case the valuation of Hutchison Essar crosses $25 billion at the time the options on these shares are exercised, the value of these shares will be calculated on the basis of a pre-agreed formula devised by Goldman Sachs.

Mr Singh’s investment company is called ND Callus while Mr Ghosh’s investment company is known as Centrino.
It is also understood that Mr Singh and Mr Ghosh may work out a modified agreement with Vodafone. The put option for Mr Singh and Mr Ghosh may become exercisable after five years instead of 10 years envisaged in the original agreement with HTIL. However this could not be confirmed, and sources close to one of them denied this.

Read more in The Economic Times article.

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