Hutchison Telecommunications International moved a step closer to privatisation after its independent board committee, formed to assess the HK$4.23 billion buyout bid from parent firm Hutchison Whampoa, advised shareholders to approve it.
Documents sent yesterday to interested parties, which include option holders, said Hutchison Telecom was expected to delist from the Hong Kong bourse on May 24 and the New York stock exchange on June 4.
The delisting plan shows Hutchison Whampoa chairman Li Ka-shing's renewed faith in privatising local firms, a process he described as difficult last year. The conglomerate offered in January to take Hutchison Telecom private for HK$2.20 a share in a cash buyout being arranged by Goldman Sachs (Asia).
That amount represents a 37 per cent premium to the operator's closing price on December 31 of HK$1.61. Its shares were up 0.47 per cent to close at HK$2.15 yesterday.
Independent board committee members Kwan Kai-cheong and Kevin Westley, who are both non-executive directors of Hutchison Telecom, described the offer as 'fair and reasonable' in their recommendation of acceptance to independent shareholders and option holders.
Macquarie Research analyst Lisa Soh said: 'We've always thought this privatisation will be successful; we don't see any major hiccups.'