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 dollars 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.

On completion of the acquisition, the HTIL is expected to realise an estimated before tax gain of about $9.61 billion from the transaction, while it is expected to result in a net cash inflow to the group of approximately $11 billion, the letter from the board said.

Meanwhile, the company has not made any final decision on the use of proceeds from the transaction. Though the general intention remains that the proceeds would be used towards reducing the group's debts, payment of a special dividend to the shareholders and funding investment opportunities in the existing and new growth markets.