Hutchison to spin off Hong Kong unit

2 Mar 2009

Reuters reports that Hutchison Telecommunications International Ltd (HTIL) plans to spin off its Hong Kong fixed line and mobile network operating businesses later this year. According to information published in the South China Morning Post, the size of the share sale has not yet been decided, but some investment bankers suggest HTIL, part of the Hutchison Whampoa conglomerate, could raise about HKD2 billion (USD256 million) from the spinoff, and the business could fetch up to HKD12 billion (USD1.54 billion). No further listing details were given. The group offers mobile services in Hong Kong under the 3 brand name via Hutchison Telephone Company, and operates fixed line and broadband services through another subsidiary, Hutchison Global Communications.