Orascom sells remaining HTIL shares

7 Dec 2007

Shares of Hutchison Telecommunications International (HTIL) rose sharply yesterday after parent company Hutchison Whampoa and the conglomerate’s chairman, Li-Ka-shing, agreed to buy Orascom Telecom Holdings Ltd’s (OTH) remaining 14.2% stake in the company for HKD7.5 billion (USD962 million). Whampoa will gain an additional 9.22% stake in HTIL, taking its total shareholding to 59.33%, while a 5% stake will go to Li Ka-shing. “OTH’s initial acquisition of HTIL shares was to gain exposure to the Indian market, however, after the sale of the Indian asset, the investment in HTIL became of less strategic value to OTH,” Orascom Chairman Naguib Sawiris said in a statement. HTIL sold its 67% stake in Indian subsidiary Hutchison Essar to Vodafone in May 2007.