Hutchison Telecommunications (HTX) has finally completed its transaction with Vodafone.
Canning Fok, chairman of Hutchison Telecom, said, "Today marks the conclusion of an outstandingly successful venture for Hutchison Telecom. I want to thank our management, my colleagues at Hutchison Essar and our many associates and friends in India for their contribution over the years building this world-class enterprise. I wish them every success in the future. We exit the Indian market as one of the best capitalised telecom companies in the region which will enable us to react swiftly to new opportunities and to accelerate growth in our existing markets. The Company looks forward to furthering its mission to deliver value to shareholders as a leading telecom operator."
The estimated pre-tax gain from the sale is expected to be approximately US$9 billion following certain adjustments. The adjustments include the provisions for the previously announced settlement agreement with the Essar Group, a retention of US$352 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 US$10.83 billion.
The company's board confirms its expectation to declare a special dividend of HK$6.75 per share following the completion of the necessary formalities. Details of the payment arrangement will be announced as soon as reasonably practicable.