Hutchison Telecom jump on news of HGC sale
HONG KONG: Hutchison Telecommunications Hong Kong Holdings Ltd shares jumped almost 15 per cent when it started trading yesterday, a day after it announced the sale of its fixed-line business for about US$1.9 billion (RM8.11 billion).
Hutchison Telecom, a unit of Hong Kong’s richest man Li KaShing’s CK Hutchison Holdings, said it had agreed to sell its fixedline telecoms business to I Squared Capital for HK$14.5 billion (RM7.95 billion) in cash.
Proceeds from the sale of Hutchison Global Communications (HGC), which provides fixed-line phone services as well as WiFi all around the country, will be used for investment into mobile phone services and for working capital.
The price represented about 12 times HGC’s earnings before interest, taxes, depreciation and amortisation, said a source close to the deal.