Business Line
 
New Delhi, Feb 11: The Hindujas confirmed that they have partnered with Qatar Telecom and Russia-based Altimo to form a consortium to acquire Hutchison-Essar. The three companies have jointly put in a bid on Friday night, according to highly placed sources in Hinduja Group.

Company sources also said that the bids made by Hindujas were binding, contrary to some reports that the company had made a non-binding bid a day later since it had not completed due diligence.

While the exact nature of the venture is not clear, Hindujas had said that it would not settle for anything less than 51 per cent.

If that is true then Qatar Telecom and Altimo can jointly hold not more than 16 per cent unless the Ruias-promoted Essar decides to sell out its 33 per cent stake. While the bidders are evaluating the company based on the enterprise value, only 67 per cent equity is on the block.

Hutchison Telecom International Ltd directly holds 51 per cent stake in Hutchison-Essar and indirectly has another 16 per cent stake through Analjit Singh of Max Group and Asim Ghosh, Managing Director, Hutchison-Essar.

In case Vodafone wins the bid, Analjit Singh may opt to retain his 7.58 per cent stake and partner the British telecom major.

Vodafone, Reliance Communications and Essar have also put in their bids by the midnight deadline. It is understood to be hovering around the $16-billion mark. While these three companies have gone solo, Vodafone will have to partner with an Indian company to fulfil the FDI norms.

Meanwhile, Essar sources said that they had tied up enough funds to up the ante even as the Ruias reserved the right of first refusal, which makes it mandatory for Hutch to seek the Indian promoter's approval before selling its stake.

This is of course refuted by Hutchison, which said that Essar could exercise the right of first refusal only in case Reliance Communications emerged the winner.

HTIL board is expected to take a view on all the bids on Sunday, according to one of the bidders.