Mumbai: Hutchison Telecom International Ltd has entered into a three-year non-compete agreement with UK Mobile phone giant Vodafone as part of the $11.08 billion deal to sell its controlling stake in Indian mobile phone operator Hutch-Essar India Ltd (HTIL).
Hong Kong-based Hutchison Telecom International will also convene an extraordinary general meeting (EGM) of the shareholders on March 9 to vote on sale of its controlling stake in Hutch-Essar to Vodafone.
In a letter to shareholders, HTIL board of directors said the company has entered into a three-year agreement with Vodafone not to carry on any business in competition to Hutch-Essar. As per the agreement, Hutchison cannot enter any business of telecom services or related infrastructure facilities or equipment in India.
HTIL cannot offer jobs to any key employees of Hutch Essar within six months of completion of the sale.
The sale is expected to be completed by either April 2 or the sixth business day after the last conditions have been satisfied for the deal, whichever is later, the letter said.
HTIL board of directors said in a circular to shareholders to vote on the agreement entered by it on February 12 to sell its 67 per cent stake in Hutch-Essar, India's fourth largest mobile phone company to Vodafone for a consideration of $11.08 billion based on an enterprise value of $18.8 billion of Hutchison Essar.
Vodafone has been given an undertaking by the Hutchison Whampoa Limited, which was the registered holder of 49.66 per cent stake in HTIL to vote in favour of the deal.