Hutch retakes majority control of HTIL

15 Jun 2007

Property-to-telecoms conglomerate Hutchison Whampoa announced this morning that it has raised its ownership of Hutchison Telecommunications International Ltd (HTIL) to just over 50%. HTIL has become a consolidated subsidiary of the Hong Kong group under listing rules following the purchase of twelve million additional shares which represent 0.251% of the telecom unit, it said in a statment. HTIL will no longer be accounted for ‘under the equity method, but will be fully consolidated into the financial statements of the group’ following the purchase, it said. Hutchison’s holding in HTIL increased from 49.75% to 50.0036% between 6-14 June, in a move aimed at better capturing growth opportunities in its existing international telecoms markets. According to TeleGeography’s GlobalComms database, HTIL was formerly wholly owned by Hutchison Whampoa, but in late 2004 the parent group initiated a plan to distribute ownership to help offset costs incurred by its aggressive launch of 3G services across the globe, largely via its 3 Group division. In December 2005 HTIL and Egypt’s Orascom Telecom announced a strategic alignment of their mobile businesses in emerging markets, with Orascom taking a minority stake in HTIL. HTIL has fixed line operations in Hong Kong and mobile businesses in Hong Kong, Macau, Thailand, Israel, Sri Lanka, Ghana, Indonesia and Vietnam, and recently sold its Indian operations to the UK’s Vodafone Group.

Hong Kong, CK Hutchison