Hutchison Whampoa Group Proposes Hutchison Telecom International Privatisation at HK$2.20 Per Share

January 7, 2010

HONG KONG, Jan. 7 /PRNewswire-Asia-FirstCall/ — Hutchison Whampoa Limited
(“HWL”) and Hutchison Telecommunications International Limited (“HTIL”, SEHK:
2332; NYSE: HTX) jointly announce today that an HWL Group company (“Offeror”)
has requested the board of directors of HTIL to put forward a proposal to
privatise HTIL by way of a Scheme of Arrangement (the “Scheme”) under the
Companies Law of the Cayman Islands (“Proposal”).

The Proposal will provide that each share of HTIL held by HTIL
shareholders (other than those which are wholly owned by HWL) on a record date
to be announced will be cancelled in exchange for HK$2.20 in cash. This
amount represents a 37% premium over the closing price on the day prior to the
suspension of trading in the HTIL shares. Holders of HTIL American Depositary
Shares (“ADSs”) will for each HTIL ADS receive the US dollar equivalent of
HK$33.00 in cash before fees and taxes. The Offeror has stated that the
HK$2.20 amount will not be increased.

HTIL was listed in October 2004 and has since established itself as a
leading pan-Asian emerging markets telecom operator. Since its IPO, HTIL has
generated total returns (including dividends and the value of the Hong Kong
and Macau spin-off) of 178% to the HTIL shareholders, translating to an
annualised return of 22% per annum through 31 December 2009.

HWL notes that, following the sale by HTIL’s subsidiaries of their
respective interests in the India and Israel operations, and the spin-off of
its Hong Kong and Macau businesses. HTIL now has operations in four
countries, none of which is amongst the top three operators in their
respective markets and all of which generate negative cash flow. HWL believes
that HTIL will continue to need significant capital to broaden and expand its
businesses and accordingly, anticipates that all the current cash in the HTIL
Group will be retained to fund its businesses, particularly in Indonesia and
Vietnam resulting in no surplus cash being available for dividends.

While HWL remains confident in the future prospects for HTIL’s growth
businesses, HWL is of the view that in the short and medium terms HTIL faces
potential uncertain financial performance with the associated risk of
significant share price volatility, thus making it less suited to remain a
publicly listed entity. HWL further notes that HTIL’s market capitalisation
has fallen from its high of HK$95.6 billion in January 2007 to its current
level of HK$7.9 billion and concurrently, liquidity and trading in both HTIL’s
shares and its ADSs have greatly declined.

After the proposed privatisation, HWL believes that HTIL would be more
able to make decisions pertaining to investments without the pressures
associated with being a publicly listed company. This will bring benefit to
HTIL’s business and to HWL’s shareholders in the long term.

It is anticipated that on completion of the privatisation, the listing of
the HTIL shares on the Stock Exchange of Hong Kong (“SEHK”) and the listing of
the HTIL ADSs on the New York Stock Exchange (“NYSE”) will be withdrawn.

A Scheme document of HTIL containing further details of the Proposal and
the Scheme, including the conditions to be satisfied and the expected
timetable, will be despatched to HTIL shareholders and to HTIL ADS holders as
soon as practicable and in compliance with applicable regulatory requirements.

Application has been made to the SEHK for the resumption of trading in the
HTIL shares on 8 January 2010 (Hong Kong Time) and trading in the HTIL ADSs is
expected to resume on 8 January 2010 (New York Time).

For detailed information, please refer to the 8 January 2010 joint
announcement by HWL, the Offeror and HTIL which is available on HWL’s website
(http://www.hutchison-whampoa.com ), HTIL’s website (http://www.htil.com ),
the website of SEHK, and in due course will be available on the website of the
United States Securities and Exchange Commission.

Cautionary Statements

This press release contains forward-looking statements. Statements that
are not historical facts, including statements about the beliefs and
expectations of HWL and HTIL, are forward-looking statements. These statements
are based on current plans, estimates and projections, and therefore you
should not place undue reliance on them. Forward-looking statements speak only
as of the date they are made, and each of HWL and HTIL undertakes no
obligation to update publicly any of them in light of new information or
future events. Forward-looking statements involve inherent risks,
uncertainties and assumptions. Each of HWL and HTIL cautions you that if these
risks or uncertainties ever materialise or the assumptions prove incorrect, or
if a number of important factors occur or do not occur, each of HWL and HTIL’s
actual results may differ materially from those expressed or implied in any
forward-looking statement. Additional information as to factors that may cause
actual results to differ materially from each of HWL and HTIL’s forward-
looking statements can be found in each of HWL and HTIL’s filings with the
United States Securities and Exchange Commission.

This press release appears for information purposes only and does not
constitute an invitation or offer to acquire, purchase or subscribe for
securities of the Offeror, HWL or HTIL nor is it a solicitation of any vote or
approval in any jurisdiction. This press release also does not constitute any
solicitation or recommendation under rules and regulations of the US
Securities and Exchange Commission.

    For media enquiries, please contact:

     Hans Leung
     Hutchison Whampoa
     Tel:   +852-2128-1363
     Fax:   +852-2128-1766
     Email: hansl@hwl.com.hk

     Ada Yeung
     Hutchison Telecom International
     Tel:   +852-2128-3106
     Fax:   +852-2187-2087
     Email: adayeung@htil.com.hk

SOURCE Hutchison Telecommunications International Limited

Source: newswire

comments powered by Disqus