Talking point

Mumbai, Feb. 5 (PTI): Hindujas today began studying the books of Hutch Essar. They have roped in leading Spanish bank Banco Santander to finance the multi-billion-dollar deal.

Ashok Hinduja, executive chairman of Hinduja TMT, said, “The due diligence has started already and since it is a very big deal, (for) how many days it will continue can only be known during the week. Our professional team is at the job.”

According to sources, Fox Mandal, one of the country’s oldest and largest full-service legal organisation, is the legal adviser to the proposed exercise for the Hindujas, while US-based company Deloitte and Touche is the adviser.

Banco Santander is Spain’s most important private bank and its network of branches, stakes in other banks and takeovers extend well beyond Spain to Portugal and Britain.

Hinduja, however, declined to disclose the composition of the team that would scrutinise Hutch Essar’s books, saying there is a non-disclosure agreement with the partners.

The company has put together a team of 30 professionals of legal, accounting and financial advisers.

Hindujas were to undertake due diligence on January 24, which could not take place as other suitors had not completed the exercise.

Banco Santander offers retail banking and consumer finance in Spain, Portugal, and other parts of Europe. Through other subsidiaries, the bank offers asset management, private banking, corporate and investment banking, and insurance services.

While Hutch Essar’s Indian partner Essar is through with confirmatory diligence of the company, Reliance Communications is in the process and British telecom giant Vodafone just weeks away from announcing a formal bid.

However, sources associated with the process said a decision on the sale of Hong Kong-based HTIL’s 67 per cent stake in Hutch Essar is unlikely before March.

Though keen on acquiring the mobile venture, the suitors are unlikely to fuel a bidding war. Vodafone CEO Arun Sarin had said during his visit to India last month that the company would not pay “over the top” in the multi-billion-dollar battle.

The Hinduja group held a 5.1 per cent stake in Hutch Essar until June last year.

Hindujas had put a non-binding bid for acquiring a 67 per cent stake in Hutchison Essar.