Hutchison sells Israel's Partner Com stake for $1.38 billion

Hutchison Telecommunications International agreed on Wednesday to sell its entire 51.3 per cent stake in the Israeli telecommunications company Partner Communications to Scailex Corp for $1.38 billion.

Hong Kong-based Hutchison, the telecoms arm of billionaire Li Ka-Shing's conglomerate Hutchison Whampoa, said that the sale price comprises of $1,08 billion in cash and a secured debt instrument of $300 million.

Canning Fok, chairman of Hutchison Telecom said, ''This transaction brings to realisation the significant value that we have created in Israel. We are proud to have built Partner into a respected and valuable company and we believe this is the right time to monetise the gain from our investment for the benefit of the company and its shareholders. I thank the management team and all the staff at Partner for their dedication and hard work throughout.''

Hutchison Telecommunications, which operates in Hong Kong, Israel, Macau, Indonesia, Vietnam, Sri Lanka and Thailand, had exited from one of the world's biggest mobile service market in early 2007, when it sold its 67 per cent stake in Indian operation to Vodafone for $ 13.1 billion. (See: Vodafone's Hutch stake acquisition fourth largest in global M&A: Dealogic)

Currently, Hutchison is in talks to sell its entire 66 per cent stake in its Thailand joint venture, Hutchison CAT Wireless MultiMedia, to its JV partner CAT Telecom.

In Israel, where Hutchison was operating under the Orange brand, was the first provider of 3G mobile services and was the second-largest mobile phone company by subscribers after Cellcom Israel. It was also the only profitable operation for the company amid the global economic downturn.

Tel-Aviv-based Scailex is the exclusive distributor for Samsung mobile handsets in Israel. Its largest customers are Israeli network operators Pelephone, Partner Communications, and Cellcom.