Hutchison buys 49% stake in Sterling

Hutchison buys 49% stake in Sterling
PRESS TRUST OF INDIA

NEW DELHI, DEC 18: The Hongkong-based Hutchison Telecommunications today said it has acquired 49 per cent equity in the capitals' mobile phone operator Sterling Cellular from foreign equity partner Swisscom AG and NRI businessman C Sivasankaran for an undisclosed amount.

A joint statement issued by the Essar Group and the Hutchison Whampoa said Hutchison Telecom International Limited has agreed to buy 49 per cent of the equity shares in Sterling Cellular, subject to required regulatory approvals. The statement did not mention about the value of the deal or possible management changes, but said "the company will continue to be managed professionally."

It also said the Hutchison and Essar would jointly explore new opportunities for investment in the telecommunications sector in India. Canning Fok, group managing director of Hutchison Whampoa was quoted by the statement as saying "our group is a leading cellular service providers with long-term commitment to India and is delighted to invest further in Indiathrough this stake in Sterling Cellular." Ravi Ruia, vice-chairman of Essar Group said he was happy to partner with Hutchison which demonstrated a unique ability to bring high quality and low cost telecom service in many parts of the world.

Investment banker Jardine Flemming was appointed by Swisscom early this year to find out a buyer for its stake.