'Essar in talks with global players'

NEW DELHI: Enthused by the successful deal with UK giant Vodafone for jointly running mobile venture Hutch-Essar, Indian conglomerate Essar today said it was talking to several global players for expanding other group businesses internationally.

"We are in talks with various international players for other businesses of the group," Essar Vice Chairman Ravi Ruia told reporters.

Asked as to what areas they were looking into for global partnership and who could be the prospective partners, he said: "We are in the middle of executing the plans for most of our businesses.

"At this juncture it would not be possible to name the prospective suitors," he said, during a joint press conference with Vodafone CEO Arun Sarin to announce the partnership between the two for Hutch-Essar, which would now be rechristened Vodafone Essar.

There were reports that Ruias are joining Eastman of USA, Arkema of France and RE Power of Germany for different activities of the group, which is involved in diverse areas like steel, hydrocarbon and petrochemicals, power, construction and telecommunication.

Asked for accepting a put option at five billion dollars for its 33 per cent stake, which is lower in valuation than what Vodafone bid for majority stake of Hutchison Telecom in Hutch-Essar, Ruia said: "It is only for covering the downside risks.

"This also demonstrates our belief that the value for our stake would go up much higher," he said.

Vodafone had successfully bid for 67 per cent equity at 11.1 billion dollars in cash and about two billion dollars in debt assumptions.