No firm plans for 3G sell-off, says Hutch

April 9, 2005 - source: BWCS

Having reported better than expected net profits for 2004 last week, Hong Kong-based mobiles to ports group Hutchison Whampoa has denied it has any concrete plans to dispose of either its UK or Italian 3G businesses. However, it is understood that the company will push ahead with plans to spin-off its fast-growing Indian mobile unit in the second half of this year. The sale was originally expected in June.

The planned sale of its Indian interests should raise some US$350 - US$500 million for the group. More importantly it would set a precedent for spinning off mobile divisions. Li Ka-shing, the billionaire owner of Hutchison, has already dropped strong hints that he may dispose of either the Italian or British loss-making mobile units before the end of this year.

Such a move would fit in well with the company's long history of asset-trading, for the moment however, Ka-shing is refusing to confirm any such move. Instead he would only say that plans are being put in place to set up new capital structures for the 3G units as the business becomes self-financing in the 2005-2006 period.