Hong Kong-based Hutchison Telecom International (HTIL), which is selling its controlling stake in Hutch-Essar to Vodafone, will pay over $415 million (about Rs 1,865 crore) to its Indian partner Essar as part of a settlement to ensure completion of the deal.HTIL today said it has reached a settlement agreement with the Essar Group in connection with the proposed sale of its entire stake in Hutch-Essar to Vodafone.The settlement coincided with Vodafone and Essar reaching a partnership agreement for jointly running Hutch-Essar, which would be renamed Vodafone Essar.Under the settlement agreement, Essar would take all steps to ensure completion of the transaction and would refrain from initiating any action that may inhibit or delay the transaction, HTIL said.In addition, Essar would give HTIL certain indemnities and waive any rights it may have in relation to the transaction.HTIL, in turn, has agreed to pay Essar $373.5 million at the closing of the transaction with Vodafone and a further $41.5 million and interest on the occurrence of certain events till the second anniversary.HTIL had announced, on February 12, its proposed disposal of interests in Hutchison Essar for 11.1 billion dollars in cash.It had received its shareholders' approval for the transaction at an extraordinary general meeting on March 9, and expects the completion of the transaction during the second quarter of 2007.
