HONG KONG, March 4 /PRNewswire/ --
- By Way of Distribution In Specie of the Entire Share Capital of the Hong Kong and Macau Operations' Holding Company Conditional on the Holding Company's Successful Separate Listing on Hong Kong Stock Exchange
Hutchison Telecommunications International Limited ('Hutchison Telecom'; 'the Company'; HKEx: 2332; NYSE: HTX) today announced the Board's approval of a conditional interim dividend and proposed spin-off by way of a distribution in specie of the entire share capital of Hutchison Telecommunications Hong Kong Holdings Limited ('HTHKH'), the holding company of the Company's Hong Kong and Macau operations ('Distribution'). The Distribution is conditional on the separate listing of HTHKH on the Main Board of The Stock Exchange of Hong Kong Limited ('Stock Exchange') by way of introduction, involving no initial public offering of shares or raising of new capital ('Listing'). The Listing is subject to approval by the Listing Committee of the Stock Exchange. On Listing, HTHKH intends to establish a sponsored but unlisted American Depositary Share Level 1 programme to be traded over-the-counter for the Company's ADS holders who will receive the HTHKH ADSs.
Since its listing in 2004, Hutchison Telecom's goal has been to create and deliver value to its shareholders while growing its emerging markets operations. To this end, it has returned in total cash dividends of HK$13.65 per share to shareholders, more than doubled to the share price at its initial public offering in October 2004. It is in furthering this effort that the Company has taken the initiative announced today. The Company believes that the Distribution and the Listing will unlock the value of HTHKH, a cash-generating asset of the Company and be beneficial to the Company and its shareholders as a whole.
Dennis Lui, Chief Executive Officer of Hutchison Telecom said: We believe that the Distribution and the Listing will benefit Hutchison Telecom, HTHKH and all our shareholders. Our Hong Kong and Macau operations have been generating solid cash flow and profitability to the Group, yet their contribution and value are unrecognised. From this initiative the individual values of HTHKH and Hutchison Telecom with its remaining operations will be better recognised and reflected by their respective public market valuations. Further, the Distribution enables our shareholders to participate in the ownership of, and enjoy the returns from, two listed telecom stocks of distinctively different strategy and growth path.
Hutchison Telecom will remain a telecom company focusing on growth in its emerging markets operations. Our Indonesian operation registered more than doubled growth in customer base in 2008 and is well-positioned to sustain this momentum as its network expands. Our Vietnam operation is primed for nationwide GSM launch this month and looks forward to establishing quickly a strong foothold in a high growth market. said Mr Lui.
Further announcements in relation to the Distribution and the Listing including the record date, the total number of HTHKH shares to be distributed, distribution ratio, expected date of Listing, definition of qualifying Hutchison Telecom shareholders for the Distribution will be made in due course. Detailed instructions for Hutchison Telecom's ADS holders and overseas shareholders regarding the Distribution will also be announced.
About Hutchison Telecommunications International Limited
Hutchison Telecommunications International Limited ('Hutchison Telecom' or 'the Group') is a leading global provider of telecommunications services. The Group currently offers mobile and fixed-line telecommunication services in Hong Kong and Israel, and operates mobile telecommunications services in Macau, Indonesia, Vietnam, Sri Lanka and Thailand. It was the first provider of 3G mobile services in Hong Kong and Israel and operates brands including Hutch, 3 and Orange.
Hutchison Telecom is a listed company with American Depositary Shares quoted on the New York Stock Exchange under the ticker HTX and shares listed on the Stock Exchange of Hong Kong under the stock code 2332. A subsidiary of the Hong Kong-based Hutchison Whampoa Group, Hutchison Telecom is dedicated to providing superior telecommunications services in dynamic markets. For more information about Hutchison Telecom, see http://www.htil.com .
Cautionary Statements
This press release contains forward-looking statements. Statements that are not historical facts, including statements about the beliefs and expectations of Hutchison Telecommunications International Limited ('the Company'), are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks, uncertainties and assumptions. The Company cautions you that if these risks or uncertainties ever materialise or the assumptions prove incorrect, or if a number of important factors occur or do not occur, the Company's actual results may differ materially from those expressed or implied in any forward-looking statement. Additional information as to factors that may cause actual results to differ materially from the Company's forward-looking statements can be found in the Company's filings with the United States Securities and Exchange Commission.
For enquiries, please contact: Mickey Shiu Corporate Communications / Investor Relations Hutchison Telecom Tel: +852-2128-3107 Mobile: +852-9092-8233 Email: mickeyshiu@htil.com.hk
Mickey Shiu, Corporate Communications or Investor Relations of Hutchison Telecom, +852-2128-3107 or mobile, +852-9092-8233, or mickeyshiu@htil.com.hk
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