The Hindu Business Line : Orascom claims first right of refusal for Hutch

Adding a new twist to the Hutchsion Essar saga, Egypt-based Orascom said on Wednesday that it held the first right of refusal in case Hutchison decides to sell equity in Hutchison Telecom International Ltd (HTIL). Orascom indirectly holds close to 10 per cent stake in Hutchison Essar through a 19.6 per cent stake in Hong Kong-based HTIL.

Sources in Orascom said HTIL would have to first check with the Egyptian company before it can execute a sale. This comes after reports that Vodafone and Reliance were contemplating picking up stake in HTIL directly instead of acquiring Hutchison Essar. HTIL holds 67 per cent stake in Hutchison Essar. The sources also said that Orascom was willing to increase its stake in HTIL at the right price. Orascom's claims come even as the Ruias' promoted Essar Group claimed right of first refusal in case Hutchison sells its stake in the Indian cellular company. Essar's claims have however been refuted by Hutchison Telecom on grounds that the RoFR rested with Essar only in case the equity was being sold to Indian firms and not if it was sold to foreign bidders.

Mr Naguib Sawaris, CEO, Orascom had earlier told Business Line that the company was interested in expanding its presence in the world's fastest growing market. Mr Sawaris had said that control of HTIL's stake would give Orascom a foothold in the other regional markets in Asia where Hutchison has invested.

Orascom's claims could pose a block to other companies in the fray to acquire Hutchison Essar.

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