HTIL moves step closer to privatisation

16 Mar 2010

According to the South China Morning Post, an independent board committee has advised shareholders in Hutchison Telecommunications International (HTIL) to accept parent company Hutchison Whampoa’s HKD4.2 billion (USD544 million) buyout bid. The committee described the offer as ‘fair and reasonable’. In January Hutchison Whampoa said in a statement it was taking HTIL private as the company needs more capital to grow its business and will no longer have surplus cash to pay dividends, and that it would be ‘more able to make decisions pertaining to investments without the pressures associated with being a publicly listed company.’ HTIL operates mobile networks in Indonesia, Sri Lanka, Vietnam and Thailand, all of which currently contribute negative cash flow to the group. It is negotiating to sell its Thai unit to local partner CAT Telecom.