Hutchison Telecommunications International Ltd (HTIL), the emerging-market telephone unit of conglomerate Hutchison Whampoa, aims to tap the mainland's third-generation mobile business after the sale of its Indian unit generated record first-half profit and a massive cash reserve.
Net profit soared to HK$70 billion for the six months to June from HK$2 million a year ago, thanks to a one-time disposal gain of HK$69.3 billion from the sale of its Indian mobile business.
HTIL, which has operations in Hong Kong, Ghana, Israel, Macau, Sri Lanka, Thailand and Vietnam, might seek to partner with mainland carriers to develop the country's 3G service, the management said after the results announcement.
'Mainland China is a huge market and we will definitely consider investing there,' chief executive Dennis Lui Pok-man said. 'Today, we have yet to know which companies will win licences but [we] hope to do something together. We can be involved in management and operation as we don't want to be just an investor.'
Although HTIL declined to reveal more details on the potential tie-up, the company would probably join hands with China Telecom, China Mobile or China Netcom, the three biggest mainland telecommunications firms that are widely expected to get the 3G licences.
Rival PCCW, Hong Kong's biggest telephone operator, has said that it will team up with Netcom's parent, its second-largest shareholder, if the mainland counterpart wins a licence.
With HK$40 billion cash from the Indian unit sale, HTIL said it aggressively scouted for opportunities in Asia in the first half but failed to come up with any deals because some of the assets were too pricey.
