Hutch’s new holding co begins trading

8 May 2009

MarketWatch reports that shares in Hutchison Telecommunications Hong Kong Holdings Ltd began trading today following its spin-off from Hutchison Telecommunications International Ltd (HTIL), and outperformed the broader Hong Kong stock market, although analysts were quoted as saying that the outlook for the operator is challenging amid intensifying telecoms competition. Hutchison Telecommunications Hong Kong is the holding company for HTIL’s fixed and mobile operational assets in Hong Kong and Macau, and is 60.4%-owned by parent conglomerate Hutchison Whampoa; HTIL is itself 60.4%-owned by Hutchison Whampoa. HTIL said it carried out the listing to unlock the value of its profitable Hong Kong and Macau businesses, and to provide a new platform for raising capital in the future. HTIL did not raise any new funds from the spin-off and had given shares in the unit as an interim dividend to its shareholders, so the value of each share issued was not disclosed.