Hutchison Telecom Planning to Float Hong Kong Business

Hutchison Telecommunications International (HTIL ) is reported to be preparing to spin off its Hong Kong based landline and mobile networks in a stock market floatation later this year. The company is estimated to be worth around HK$12 billion (US$1.56 billion), although only a fraction of the shares are likely to be offered.

"The spin-off could help HTIL realise the valuation of the Hong Kong business. I do think they would like to cash out [through the share offering] and then reinvest in the region, as everything is selling cheap in the market," Winson Fong, the managing director of SG Asset Management (Hong Kong) told the South China Morning Post.

A local investment banker added: "Assets are very cheap right now. So I would not take these spin-offs as evidence Hutchison needs more money to fund its own operations. The company is very well funded."

It is expected that more details of any planned share sale could be announced on Wednesday when the firm publishes its financial results.

On the web: South China Morning Post

Posted to the site on 2nd March 2009