Hong Kong-listed Hutchison Telecommunications International (HTI) has announced that its largest shareholder, Hutchison Whampoa, has tabled an offer to take the firm private.
HTI, which is currently offloading a number of its Asian assets, announced a…
Hong Kong-listed Hutchison Telecommunications International (HTI) has announced that its largest shareholder, Hutchison Whampoa, has tabled an offer to take the firm private.
HTI, which is currently offloading a number of its Asian assets, announced a trading halt of its shares on the Hong Kong bourse.
The firm said that it has received an approach from Whampoa regarding a “possible general offer to the company’s shareholders and optionholders, and understands that an announcement on the subject pursuant to the Takeovers Code may be imminent. In order to avoid any possibility that an uninformed market for the company’s shares could develop, the board hereby confirms its request for suspension of trading in the securities of the company.”
The move was not unexpected. Over the past few years HTI, 60.4% owned by Whampoa, has offloaded high value assets in India, Israel and other growth markets. This is in addition to spinning off its Hong Kong and Macau business, Hutchison Telecommunications (Hong Kong). All that remain are unprofitable units in Thailand, Sri Lanka, Indonesia, and Vietnam.
Late last year the firm sold its 51.3% stake in its Israeli unit Partner Communications to Scailex Corp for US$1.38bn in cash and debt. By taking the company private, Whampoa will be able to pocket the gains from the sale as there will be no dividend obligation.
Hutchison Whampoa is owned by billionaire Li Ka-shing, one of Asia’s richest men.
HTI is currently in the process of offloading its 75% stake in Thai firm CAT Telecom for around US$150m to CAT Telecom.