Shareholder advisory firm Glass Lewis & Co has recommended Hutchison Telecommunications International’s independent shareholders vote in favor of a US$545m privatisation plan by parent firm Hutchison Whampoa.
In a report, Glass Lewis stipulated: “We…
Shareholder advisory firm Glass Lewis & Co has recommended Hutchison Telecommunications International’s independent shareholders vote in favor of a US$545m privatisation plan by parent firm Hutchison Whampoa.
In a report, Glass Lewis stipulated: “We believe that this proposal is beneficial for shareholders. The remaining businesses of Hutchison Telecom are losing money and the proposed consideration offers shareholders a reasonable equity premium in exchange for their shares.”
The de-listings form the central part of Whampoa’s plan to restructure Hutchison Telecom, in which it holds a 60.4% stake. Whampoa, controlled by billionaire Li Ka-shing, is offering to take the firm private for HK$2.20 a share. This would give the firm control over Hutchison Telecom’s unprofitable operations in Sri Lanka, Indonesia, and Vietnam, which it would then restructure.
Hutchison Telecom will commence a shareholders’ meeting on May 12 to vote on the proposal.
Goldman Sachs is advising on the transaction.
The company will delist from the Hong Kong Stock Exchange on May 25 and from the New York Stock Exchange on June 4 if Hutchison Whampoa gains approval from a Cayman Islands court and shareholders.