Essar group plans to monetise its 33 per cent stake in Hutchison-Essar, its joint venture with UK’s Vodafone, to raise around $4.5 billion (Rs 18,000 crore) for overseas acquisitions. This will be the largest fund-raising through share monetisation by an Indian company.
The group recently bought two steel plants in Canada and the US for $3.2 billion and committed $4 billion in Egypt to set up a refinery and steel plants. It is hunting for more global assets.
Sources close to the development said the group has appointed banks to advise it on assigning its one-third stake in India’s fourth-largest mobile service provider.
The attempt also reflects the buoyancy in the domestic telecom industry. “It shows that the Essar group is certain about the rising valuation of its holding in Hutchison-Essar before it exercises its put option,” the banker added.
On the basis of the acquisition cost paid by Vodafone, which recently acquired Hong Kong-based Hutchison’s 52 per cent stake, Essar’s holding in Hutchison-Essar is valued at $5.46 billion.
Read more in The Business Standard article.
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