Special distribution of HK$6.75 per share on the cards after Indian unit's disposal
Hutchison Telecommunications International Ltd (HTIL) would pay a special dividend of HK$6.75 per share from the HK$85.9 billion sale of its 67 per cent stake in an Indian mobile operator to Vodafone Group of Britain, the firm said yesterday.
Hutchison Whampoa, controlled by Li Ka-shing, is expected to receive HK$15.77 billion from the distribution, based on its 49 per cent interest in Hutchison Telecom.
In addition to the HK$32.2 billion distribution to shareholders as soon as August, HTIL would use HK$14 billion from the sale to pay down its debt while retaining the remaining HK$39 billion for business development in new markets, chief executive Dennis Lui Pok-man said yesterday.
The plans are subject to completion of the deal. 'Valuations for emerging market telecommunications assets could cool in the next 12 to 24 months,' Mr Lui said. 'Our balance sheet leaves us in a good position to pursue other opportunities.'
He said that the company might also speed up investments in its new businesses in Vietnam and Indonesia.
The day after the sale of Hutchison Essar was announced last week, HTIL shares sank 15 per cent, the largest fall since the company listed in October 2004, on investor uncertainties surrounding the company.
