DoT to consult MoF on Orascom

Category: Government | No Comments | Posted on March 14, 2006

In the wake of Essar’s query to department of telecommunications, the DoT is likely to consult the finance ministry before taking a view on the legality of Egypt-based Orascom’s 9.5% indirect shareholding interest in Hutchison Essar. It is also expected to discuss the legal pros and cons of Orascom Telecom reserving a seat on the Hutch Essar board by virtue of its indirect interest.

DoT officials declined to comment on whether Orascom’s indirect presence in Hutch Essar posed a threat to national security, given that the Egyptian company operates mobile services in Pakistan and Bangladesh.

Besides securing representation at the operating subsidiary (Hutch Essar) board level, Orascom also has the conditional right to purchase a further 3.7% direct interest, in Hutchison Telecom International within the next 12 months, which will increase its indirect interest (read: beneficial holding) in Hutch Essar to roughly 13% from the present 9.5%.

Source: ET

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