Hindujas Sell 49% Indusind Telecom Stake To Sumitomo

The Hindujas have sold 49 per cent equity in IndusInd Telecommunications Ltd (ITL), the investment company through which the London-based NRIs hold 30 per cent in Gujarat cellular licensee Fascel Ltd, to Japans Sumitomo Corporation.

Sources refused to divulge the price at which the deal was struck. However, unconfirmed reports said the Hindujas stake was sold at about Rs 30 a share. At this price among the highest struck in the Indian cellular telecom industry the deal is estimated at some Rs 170 crore.

Fascel has a paid-up capital of Rs 390 crore, of which ITL holds 30 per cent. Besides financing their equity contribution of Rs 59.67 crore in IndusInd Telecom, the deal with Sumitomo Corp is said to have resulted in a windfall of some Rs 110 crore for the Hindujas.

The Hindujas had acquired the 30 per cent equity from Himachal Futuristic Communications Ltd (HFCL) late last year. The Rs 170 crore deal with Sumitomo almost covers the cost of acquiring the shares, sources said.

Sumitomo intends to take a portion of the equity in IndusInd Telecommunications, K V Seshasayee, chief executive officer of Hinduja Telecommunica-tions Ltd, told Reuters.

The sale of a stake to Sumitomo would not mean that the Japanese company would take control of the company or its affiliates, he added.