In the latest development over the security implications of Orascom’s recently bought stake in Hutchison Telecommunications International Limited (HTIL), the parent company of Hutchison Essar, DoT is awaiting a reply from the Foreign Investment Promotion Board (FIPB). DoT’s query to FIPB relates to whether HTIL required FIPB approval prior to selling a minority stake to Orascom, an Egyptian company. This is in response to Essar’s letter, which sought a clarification on whether the entry of a strategic partner (Orascom) at the foreign holding company level (HTIL) required prior government approval, especially if such a shareholding change in the holding company triggers changes in the indirect shareholding of the domestic company, Hutchison Essar.
