Hutch shelves IPO

Posted on | November 22, 2006 |

Differences between the two JV partners of Hutch — Hutchison International and Essar Group — have led to the scrapping of plans to list Hutchison Essar.

Hutchison group MD Canning Fok was quoted as saying:

“the original plan to list the business was largely to fulfil the commitment made by the group to JV partner Essar.

When you have disagreements you don’t go for listing…

The time has gone now… After we listed HTIL, I don’t need a listing in India…”

India is the biggest contributor to HTIL’s revenues.

In a positive development for the company, Hutchinson Essar is moving closer to a pan Indian presence with the receipt of “Letters of Intent” for six new telecom licenses in North East, Himachal Pradesh, Bihar, Orissa, Assam and Jammu and Kashmir.

Hutch, the third-largest GSM operator in the country, expects to launch in these licence areas during 2007.

A Letter of Intent from the DoT is the government’s offer to issue a licence upon the applicant’s acceptance and payment of the relevant fees.

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