Hutchison looking for cash injection from partner

23 Jul 2004

Hong Kong-based ports-to-telecommunications conglomerate Hutchison Whampoa is rumoured to be on the verge of asking one of its main strategic business partners to take a major hand in the planned USD2 billion listing of shares in its Hutchison Telecommunications International (HTIL) subsidiary. According to the Financial Times, Japanese equipment supplier NEC is one such partner Hutchison is keen to get on board in a bid to reduce its dependency on having retail investors make the October IPO a success. NEC supplies most of the handsets for Hutchison’s worldwide third-generation mobile operations. Two months ago Japanese operator NTT DoCoMo agreed to spend up to USD200 million on HTIL shares, after selling its 20% stake in Hutchison’s UK subsidiary back to the holding company. HTIL has operations in Hong Kong, Macau, Sri Lanka, India, Thailand, Israel, Paraguay and Ghana.