Hindujas begin due diligence for Hutch-Essar bid

MUMBAI: After some hitches and delays, Hindujas are finally starting the due diligence for Hutchison Essar (HEL) on Monday. The group, which held 5.1% stake in HEL until June last year, has roped in three-four advisors for conducting due diligence.

���We have finalised legal, accounting and financial advisors. A team of around 30 people is flying in to start the process (of due diligence) on Monday,��� Hinduja group CFO Prabal Banerji told ET.

Denying reports of backing out from bidding for buying Hutchison Telecommunication International���s (HTIL) stake in HEL, Mr Banerji said the group was very much in the race.

Last month, Hinduja TMT executive chairman Ashok Hinduja said they had put a ���non-binding��� bid for acquiring 67% stake in HEL, the joint venture between the Essar group and HTIL.

Initially, the Hindujas were expected to conduct due diligence on January 24-25. However, the date was later shifted to February 5 after other players extended their time.

Already, Reliance Communications (RCL), UK���s Vodafone and the Essar group have completed due diligence. While RCL is interested in a complete buy-out of HEL, Vodafone needs an Indian partner as FDI norms restrict foreign ownership to 74%.

The Ruias will need to buy only 67% stake held by HTIL as they own the rest while the Hindujas too have said they are looking at the 67% stake of HTIL.