Press release
HTHKH to sell 100% interest in HGC
to Asia Cube Global Communications Limited
Hong Kong, 30 July 2017 -
Hutchison
Telecommunications
Hong Kong Holdings Limited
("HTHKH" or "the Company"; st
ck code:
215) announced today that it has signed
a sale and
purchase agreement to sell its
ntire shareholding interest in Hutchison Global Communications
Investment Holding Limited ("HGC"), together with an associated shareholder loan, to Asia Cube Global Communications Limited (the "Purchaser"), a company wholly-owned by a fund managed by I Squared Capital, for a total consideration of approximately HKD 14.5 billion.
The transaction will enable HTHKH to focus its resources more effectively on its core business of providing mobile services to its customers. Furthermore, HTHKH believes the transaction will create
value for its shareholders by unlocking the value of HGC, which has not
been fully reflected in
HTHKH's share price
in recent
years. Through the transaction
HTHKH will receive
substantial
proceeds,
which will
enable HTHKH to continue to
invest and strengthen its leading market
position in the mobile business.
The HGC Group will remain a key supplier of fixed-line services to
HTHKH, and the two companies intend following the completion of the transaction.
to maintain a cooperative commercial
relationship
HTHKH intends to use the net
proceeds
from the
transaction
for its general working capital
purposes and investment in the mobile business.
Commenting on the transaction, HTHKH Chairman Canning Fok said: "The transaction represents an excellent opportunity to crystallise value for the Company and its shareholders. The Company will utilise the proceeds efficiently to continue growing its mobile business."
Completion
is subject to the approval of
the transaction by
the shareholders of
HTHKH. CK
Hutchison Holdings Limited, which has an interest in approximately 66.09% of the issued HTHKH
shares, has undertaken to HTHKH to procure that such shares
will be voted in favour of the
resolution to approve the transaction at an extraordinary general meeting of the shareholders of
HTHKH to be convened. It is expected that the transaction will be completed in or aro
nd October
2017. Upon completion of the transaction, HGC will no longer be a subsidiary of HTHKH and the
financials
of the HGC
Group will cease to
be consolidated int
HTHKH's
consolidated financial
statements.
Deutsche
Bank AG, Hong Kong
Branch and Goldman Sachs (Asia) L.L.C.
acted as the financial
advisors for HTHKH on this transaction.
For more details, please refer to our announcement published on the websites of HTHKH and The Hong Kong Stock Exchange.
- Ends -
11
About Hutchison Telecommunications Hong Kong Holdings Limited
Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH, or the Group; stock code: 215)
is a leading telecommunications operator that combines the str
ngths of mobile, fixed and Wi-Fi
networks. Advanced mobile communications are provided in Hong Kong and Macau under the "3"
brand, while fixed-line resident al broadband, telephone and IDD services
are offered in Hong
Kong as part of the "3Home Broadband" stable of offerings. The Group also provides local and
international customers with sophisticated
fixed-line
services, corporate
solutions,
data centre
capabilities, cloud computing and high-speed Wi-Fi
services under the HGC brand. HTHKH is a
member of the CK Hutchison Holdings group (stock code: 1) and channels the latest t
chnologies
into innovations that set market trends and steer industry develo
ment.
For more information on HTHKH, please visit www.hthkh.com. For 3 Hong Kong mobile services, please visit www.three.com.hk. For 3 Macau mobile services, please visit www.three.com.mo.
For HGC fixed-line services, please visit www.hgc.com.hk.
About HGC Group
The HGC Group is a leading fixed-line operator, IT service provider, carrier's carrier and one of Hong
Kong's largest-scale
Wi-Fi service providers. The HGC Group
empowers local and overseas
customers with one-stop international, carrier, corporate, data centre and residential broadband services. The HGC Group owns and runs an extensive optical-fibre network, coupled with four cross- border routes integrated with three of mainland China's tier-one telecoms operators, plus a world- class international network. The HGC Group is committed to developing cloud computing services
and offering high-speed Wi-Fi
service under the "HGC On Air" brand. HGC is a subsidiary of
Hutchison Telecommunications Hong Kong Holdings Limited (stock code: 215), a group member of CK Hutchison Holdings (stock code: 1).
About Asia Cube Global Communications Limited
Asia Cube
Global Communications Limited
is a company wholly-owned by funds managed by
I Squared Capital. I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, and transport in the North America, Europe, and select high growth
economies. The Firm Singapore.
has offices in New
York, Houston, London, New Delhi, Hong
Kong and
For enquiries, please contact:
Corporate Affairs Frances Ng / Ada Yeung
Tel: 2128 6739 / 2128 3108
frances.ng@hthk.com / ada.yeung@hthk.com
Investor Relations Joe Tong
Tel: 2128 6828
joe.tong@hthk.com
2
CK Hutchison Holdings Limited published this content on 30 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 July 2017 01:19:07 UTC.
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