The privatisation of Hutchison Telecommunications International is nearing the home stretch, with less than three weeks to go before shareholders put the HK$4.23 billion buyout bid of parent firm Hutchison Whampoa to the vote.
'We don't see any major problems to this deal being approved,' Macquarie Research analyst Lisa Soh said. 'We believe the bid, at HK$2.20 a share, is an attractive way for shareholders to realise value from Hutchison Telecom, given the company's guidance for continued operating losses this year, increasing capital expenditure and no dividends.'
Hutchison Telecom, in which Hutchison Whampoa has a 60.4 per cent shareholding, saw its operating loss increase 155 per cent last year to HK$2.07 billion from HK$813 million in 2008 because of investments at its Asian emerging market operations.
The operator has committed to expanding its mobile-telephone network services across Sri Lanka, Vietnam and Indonesia.
Hutchison Whampoa in January offered to take Hutchison Telecom private through a cash buyout offer.
Following listing rules, the two companies on Thursday evening jointly announced in a filing with the Hong Kong stock exchange the closure of registers of members from May 7 to 12. The register records the names and addresses of shareholders and the number and class of shares held by each.