World VoIP NewsHutchison Whampoa offers USD544 million to take HTIL privateHutchison Whampoa offers USD544 million to take HTIL private

Hutchison Whampoa offers USD544 million to take HTIL private


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Hong Kong-based conglomerate Hutchison Whampoa has made an offer to buy out minority shareholders of its 60%-owned overseas mobile subsidiary Hutchison Telecommunications International Limited (HTIL), worth HKD4.23 billion (USD544 million), or HKD2.20 per share.
Hong Kong-based conglomerate Hutchison Whampoa has made an offer to buy out minority shareholders of its 60%-owned overseas mobile subsidiary Hutchison Telecommunications International Limited (HTIL), worth HKD4.23 billion (USD544 million), or HKD2.20 per share.

The price represents a 37% premium over the share price prior to the announcement on Friday. 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, whilst 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, whilst it is negotiating to sell its Thai unit to local partner CAT Telecom.


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