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Hutchison Whampoa considers telecom buyout
05 January 2010
Li Ka-shing’s Hutchison Whampoa is considering taking complete ownership of HTIL, its telecommunications subsidiary with interests in emerging markets
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Hutchison Whampoa
Li Ka-shing
HTIL
Partner
Orange
Comment: Hutchison Whampoa used to be one of the powers of the telecommunications industry worldwide: it was one of the founders of Orange in the UK, creating the brand that ended up in the hands of France Telecom, and then founded — and still controls — the operators that use the 3 brand in several countries.
Hong Kong conglomerate Hutchison Whampoa is weighing a buy-out offer to take its telecoms subsidiary private.
Hutchison Telecommunications International (HTIL), an emerging markets-focused telecoms group, made a net loss of $37 million, in the six months to the end of June 2009.
The possible takeover will help Li Ka-shing, controller of Hutchison Whampoa, gain increased access to the $1.4 billion that HTIL raised from the sale of a controlling stake in Partner Communications, Israel’s second biggest wireless carrier, in 2009. It will also give Hutchison Whampoa more ownership of the unit’s businesses in emerging markets, including Vietnam and Indonesia.
Li controls 67% of HTIL’s shares through a 60.4% stake held by Hutchison Whampoa and his personal holdings.
HTIL has operations in Indonesia, Sri Lanka, Thailand and Vietnam, all of which lost money in the first half of last year. GTB