Hutch Telecom sets March 9 vote on Essar sale

HONG KONG, Feb 21 (Reuters) Hutchison Telecommunications International Ltd. has scheduled a March 9 shareholders meeting to vote on its deal to sell a controlling stake in Indian cellphone operator Hutchison Essar to Britain's Vodafone Group Plc. for US.1 billion.

While Hong Kong-based Hutchison Telecom has said it will earn a pre-tax exceptional profit of US.6 billion on the sale of its 67 percent of Hutchison Essar, which was agreed earlier this month, its shares were off by about 13 percent from when the deal was announced through last week.

The stock was up 4.18 percent on Wednesday morning after the Lunar New Year holiday break, at HK.44.

Analysts have said the price Vodafone is paying for control of India's fourth-largest cellphone carrier is high, but some investors were disappointed that the deal valuation fell short of potentially higher levels cited in media reports.

Also, Hutchison Telecom has not yet said exactly what it will do with the exceptional gain. The company, a unit of conglomerate Hutchison Whampoa Ltd. , has scheduled a media conference for Thursday afternoon in Hong Kong during which further details are expected.

The Indian business is Hutchison Telecom's largest asset.

After the deal, the company would be left with operations in Hong Kong, Israel, Thailand, and several other emerging markets.

Reuters YA DB0841