Hutchison Whampoa to privatise Hutchison Telecom for $538 million

Hutchison Whampoa, run by Hong Kong billionaire Li Ka-shing plans to privatise its unit Hutchison Telecommunications International Ltd. (HTIL ) in a deal valued at HK$4.23 billion ($538 million).

Hutchison Whampoa, which holds 60.4-per cent stake in HTIL, will buy the remainder of its stake for HK$2.2 a share, amounting to HK$4.23 billion. The offer represents a 37 per cent premium over the closing price of $1.65 on the day prior to the suspension of trading in Hutchison Telecom shares.

The diversified conglomerate Hutchison Whampoa will finance the offer from internal resources.

The privatisation would enable HTIL re-itergrate itself with its parent company after having sold its key assets in the last three years.

HTIL, which operates in Hong Kong, Israel, Macau, Indonesia, Vietnam, Sri Lanka and Thailand, had sold its 67-per cent stake in Indian operation to Vodafone for $ 13.1 billion in early 2007. (See: Vodafone's Hutch stake acquisition fourth largest in global M&A: Dealogic)

In August 2009, it sold its entire 51.3 per cent stake in the Israeli telecommunications company Partner Communications to Scailex Corp for $1.38 billion. (See: Hutchison sells Israel's Partner Com stake for $1.38 billion)