Shareholders of Hutchison Telecom International Ltd (HTIL) have approved the sale of the company’s stake in Hutchison Essar to UK mobile giant Vodafone for USD11.1 billion in cash with an overwhelming majority. The shareholders approved the deal at an Extraordinary General Meeting held in Hong Kong this morning.
Meanwhile, the Delhi High Court has directed the Centre and Foreign Investment Promotion Board to complete an inquiry into HTIL allegedly holding more than the permissible 74% stake in Hutchison Essar within two months. Telecom Watchdog, a consumer interest group, had filed a petition before the court alleging that foreign equity in the cellco is 89.03%, well in excess of the 74% permitted under the FDI policy. Hutchison Telecom had called the allegations ‘groundless.’