Li Ka-shing may sell his stake in online travel agency Priceline.com in a transaction that could raise US$250 million to fund his third-generation (3G) mobile-phone businesses.
Nasdaq-listed Priceline yesterday filed a shelf registration statement with the Securities and Exchange Commission that would allow Hutchison Whampoa and its sister firm, Cheung Kong (Holdings), to sell 10 million shares on the open market within two years.
The two companies own a combined 12.7 million shares, or about 34 per cent of Priceline, which they bought three years ago.
Priceline had a market capitalisation of US$937.35 million as of Monday. The stock rose 2.4 per cent to $24.87 on Monday after the company reported net profit of $5.1 million for the first quarter.
Priceline chief executive Jeffrey Boyd said the filing would give the firm's largest shareholders the flexibility to sell shares over time in an orderly and registered distribution, consistent with their contractual rights and market practice.
This is the second time Mr Li's businesses have filed to sell down their stakes in Priceline. The first filing, made in 2001, was withdrawn after the September 11 attacks sent the travel industry into a tailspin.