HTIL shareholders back parent’s buyout offer

13 May 2010

More than 90% of Hutchison Telecommunications International Ltd (HTIL) shareholders yesterday backed the HKD4.23 billion (USD544 million) buyout offer from majority owner Hutchison Whampoa, clearing the necessary 75% threshold and taking the company another step closer to delisting. The proposed deal to buy out all minority stakeholders at HKD2.20 per share now remains subject to obtaining sanction from the Grand Court of the Cayman Islands (where HTIL is registered). A statement from HTIL said that, subject to the proposal becoming effective, the last day for dealing in HTIL shares on the Stock Exchange of Hong Kong (SEHK) and American Depository Shares (ADSs) on the New York Stock Exchange (NYSE) is 17 May 2010. HTIL’s securities are expected to be delisted from the SEHK on 25 May 2010 and from the NYSE on 4 June 2010, whilst further details are contained in documents issued in relation to the proposals on the websites of Hutchison Whampoa and HTIL. HTIL currently operates mobile networks in Indonesia, Sri Lanka and Vietnam, all of which contribute negative cash flow to the group, whilst Thailand’s government gave its approval for a takeover of HTIL’s subsidiary in the country by joint venture partner CAT last month. Hutchison Whampoa’s other telecoms activities are shared between its 3 Group division – covering Europe and Australia – and its majority-owned domestic subsidiary Hutchison Telecommunications Hong Kong Holdings (HTHKH).