Hong Kong: Hutch Telecom shareholders approve sale

Hong Kong, Mar 9: Shareholders of Hutchison Telecommunications International Ltd have approved the US.1 billion sale of a controlling stake in India's No. 4 cellular operator to Britain's Vodafone Group Plc.

Hutchison Telecom, which agreed in February to sell its 67 percent stake in Hutchison Essar, plans to pay a special dividend amounting to US.1 billion following the deal.

''We have received overwhelming support from our shareholders for this transaction which we are delighted to have received,'' Chief Finance Officer Tim Pennington said after a shareholders' meeting on Friday.

The dividend amounts to HK.75 per share or US.96 for each of the company's American Depositary shares.

Ports-to-telecoms conglomerate Hutchison Whampoa Ltd., which is controlled by Hong Kong billionaire Li Ka-shing, will receive nearly half the special dividend payout.

Hutchison Whampoa owns nearly 50 percent of Hutchison Telecom.

Shares in Hutchison Telecom fell 2 percent on Friday morning, lagging a flat overall market.

Reuters