Hutchison Telecom and Vodafone complete Hutch Essar deal

9 May 2007

Hutchison Telecommunications International Limited (HTIL) has announced that it has completed the sale of its stake in Hutchison Essar with Vodafone. HTIL estimates it will record a pre-tax gain from the sale of USD9 billion following certain adjustments. The adjustments include the provisions for the previously announced settlement agreement with the Essar Group, a retention of USD352 million by Vodafone in consideration for their waiving of certain potential claims against the company, the receipt of interest from Vodafone and transaction costs and expenses. The net cash inflow to Hutchison Telecom before payment of the settlement amount is approximately USD10.83 billion.