Hutchison Whampoa has reportedly offered to buy the Hinduja Group’s 5.11 per cent stake in Hutchison Essar for $400 million. It has also offered a gain of up to $50 million upon listing of the Indian entity. A value of $400 million for a 5 per cent stake would thus mean a current valuation of $8 billion for Hutchison Essar. If the entity is subsequently listed, and the market valuation is higher than $8 billion, Hutchison is believed to have offered a further $50 million. The Hindujas are reportedly not willing to accept the offer.
The Hinduja Group is reportedly looking at a valuation of at least $12 billion for Hutchison India with an upfront discount.
