Hutchison Whampoa Commits AUD2.85b to Australian unit issue

6 Jun 2007

Hutchison Telecommunications Australia has said its parent Hutchison Whampoa has committed AUD2.85 billion to the group as part of a rights issue of convertible preference shares. A spokeswoman for Sydney-based Hutchison Telecommunications Australia said the take-up could lead to Hutchison Whampoa, controlled by billionaire Li Ka-shing, controlling as much as 97.6% of the Australian group when the shares are converted. The spokeswoman said its minority shareholders committed AUD866,000 to the 20-for-1 rights issue. Hutchinson Whampoa, which owns 57% of Hutchison Telecommunications Australia, took up its full entitlement in the rights offer and acted as underwriter for the issue.

Hutchison Telecommunications Australia plans to use the proceeds of the offer to pay down debt related its 3G mobile phone network to around AUD1.1 billion.

Australia, CK Hutchison, Hutchison Telecommunications Australia