Hutchison Telecom approves interim dividend, spinoff of Hong Kong, Macau holding company

By Lisa Kerner

Charlotte, N.C., March 4 - The board of directors of Hutchison Telecommunications International Ltd. approved a conditional interim dividend and the proposed spinoff of the entire share capital of Hutchison Telecommunications Hong Kong Holdings Ltd.

HTHKH is the holding company of Hutchison Telecom's Hong Kong and Macau operations, according to a company news release.

The distribution is conditional on the separate listing of HTHKH on the main board of the Stock Exchange of Hong Kong Ltd.

More details about the distribution and listing, including the record date and number of shares to be distributed, will be announced.

HTHKH intends to establish a sponsored but unlisted American Depositary Share level 1 program to be traded over the counter for Hutchison Telecom's ADS holders who will receive the HTHKH ADSs, the release said.

Hutchison Telecom believes that the distribution and listing will unlock the value of HTHKH, a cash-generating asset of the company.

"Our Hong Kong and Macau operations have been generating solid cash flow and profitability to the group, yet their contribution and value are unrecognized," Hutchison Telecom chief executive officer Dennis Lui said in the release.

"From this initiative the individual values of HTHKH and Hutchison Telecom with its remaining operations will be better recognized and reflected by their respective public market valuations."

Hutchison Telecom is a Hong Kong-based telecommunications company that provides service in Hong Kong, Macau, Israel, Indonesia, Vietnam, Sri Lanka and Thailand.

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