Hutchison to sell UK 3G company

May 22, 2005 - source: BWCS

Wily Hong Kong billionaire Richard Li Ka-shing has confirmed that his company, Hutchison Whampoa, will likely spin off its UK 3G operations by summer 2006. The move, which has been predicted by company watchers for some time, will follow Ka-shing's planned flotation of his Italian 3G company, expected later this year.

The confirmation of his plans spilled out at Hutchison Whampoa's annual general meeting for shareholders. During his report to the floor, Ka-shing confirmed that Hutchison is chasing a next generation mobile phone licence in Poland, but declined to comment on whether the company would go after an established 3G licence holder in Spain.

Recent reports in the Spanish press have linked Hutchison to a 50% stake in 3G mobile hopeful Xfera. The company won one of the 3G licences put up for grabs in Spain in 2000, but has so far not launched any services.

In a bid to rally shareholder support Li reported that he expected strong growth in all of the company's overseas investments in the next two to three years but gave no specific details.