MUMBAI: Hinduja TMT Ltd has announced that it has entered into a share purchase agreement with Pacific Horizon Ltd, a subsidiary of Sumitomo Corporation, Japan for buying an effective 1.23 per cent stake in Hutchison Essar Ltd (Hutch).

The agreement is for purchase of Sumitomo's 100 per cent stake in Pacific Horizon, which currently holds 24.12 per cent of IndusInd Telecom Network Ltd (ITNL). In Hutch, ITNL currently holds a 5.11 per cent stake. This translates to Pacific Horizon holding an effective stake of 1.23 per cent in Hutch.

HTMT, according to the agreement, is purchasing 50 per cent of Pacific Horizon up front while the remaining stake will be bought at a later date.

With this acquisition, HTMT, together with its wholly owned subsidiary InNetwork Entertainment Ltd, will hold 91.54 per cent of ITNL. This corresponds to a 4.68 per cent effective stake in Hutch, the company told BSE.