New Delhi: Hong Kong based Hutchison Telecom, while giving details of the minority stake in the joint venture in which Vodafone has bought a controlling stake, has pegged the value of its two individual shareholders Analjit Singh and Asim Ghosh's 12.26 per cent stake in Hutch Essar at $431 million.
Hutchison Telecommunications International Limited (HTIL) has submitted the necessary documents with the Finance Ministry in this regard.
HTIL has clarified on this issue saying the fair market valuation is due to the debt component and preference shares and holding company discount which has been subtracted from the gross valuation of their stakes.
This is not under valuation in anyway. Press Note 5 (the overall telecom FDI guidelines) requires proportionate holding to be taken into account for the purpose valuation.
While Singh's stake valued at $266.25 million, Ghosh's stake is $164.5 million in a 'fair market' valuation method, which deducts debts, preference shares and holding company discounts, as per the HTIL submission.
This valuation is lower vis-a-vis the $18.8 billion enterprise value of HEL at which UK's Vodafone acquired the HTIL stake, the 12.26 per cent stake would be worth about $2 billion. Singh holds 7.58 per cent and Ghosh 4.68 per cent.
One cannot value a holding company stake as a direct company stake. Asim Ghosh owns 24 per cent in Telecom Investment India which translates in to a 4.68 per cent stake in HEL.
Same is with the respective stake of Analjit Singh, sources close to HTIL said.
(With inputs from PTI)
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