Vodafone pays $0.9 bln less for Hutch-Essar sale

New Delhi, May 9 (UNI) British telecom giant Vodafone today said it has completed the acquisition of a controlling stake in India's fourth-largest mobile carrier, Hutchison-Essar, paying 10.9 billion dollars, as against 11.8 billion dollars announced earlier.

The less payment of 0.9 billion dollars includes provisions for the previously announced settlement agreement with the Essar Group, a retention of 3.52 billion dollars by Vodafone in consideration of their waiving off certain potential claims against the company, the receipt of interest from Vodafone and transaction cost and expenses.

''I am delighted that, having secured all the necessary regulatory approvals, we are now able to complete this important transaction and move on to the process of integration,'' Vodafone Chief Executive Arun Sarin said in a statement from Newbury, London.

The stage is now set for Vodafone to start its operations in India, which is witnessing an addition of five million new mobile subscribers every month.

The Hutch-Essar will also become Vodafone-Essar over a period of time.

''India is a tremendously exciting, fast moving market and I am confident that the Hutch Essar business will make a major contribution to the Vodafone Group over the coming years,'' he added.

The Vodafone CEO had earlier said they would work towards becoming the leading mobile player in India.

The estimated pre-tax gain from the sale is expected to be abour nine billion dollars to Hutchisson Telecom International Ltd, which sold its entire stake to Vodafone.

UNI