The Essar Group plans to increase its holding in Hutchison Essar Telecom, its joint venture with Hutchison Telecommunications International Limited (HTIL), to nearly 38 per cent. The Rs 200 billion diversified group, which currently has a 30.4 per cent stake in Hutchison Essar Telecom, has signed a deal with Max Telecom to acquire its 3.16 per cent stake in the company. The acquisition of another 4.4 per cent stake may cost the group nearly Rs 9.5 billion going by the price it paid to Max Telecom. According to the promoters, HTIL and Essar are looking at a combined shareholding of 80 per cent. Since HTIL currently holds 42 per cent stake in the company, there is enough room for the Essar Group to scale up its holding to 38 per cent. The other shareholders in the company include the Kotak Group (19 per cent stake) and the Hindujas (5 per cent).
