Hutch' Delays First 3G Float

November 28, 2005 - source: BWCS

Hong Kong based conglomerate Hutchison Whampoa looks set to delay its initial public offering of shares in Italian 3G service provider 3. The company, owned by billionaire businessman Li Ka-shing, said its original sale timetable may not be met due to problems in obtaining regulatory approval.

Hutchison had hoped to sell shares in 3 Italia SpA before the end of this year. The ports to mobile outfit applied to the Italian authorities for permission to launch the IPO in September of this year. Hutchison hopes to raise euros 2.5 billion (US$3 billion), however, the company now believes it will have to wait until the first quarter of 2006 at the earliest before the sale can go ahead.

Li Ka-shing's long-term plan is to rely on asset sales to maintain profit growth, following his investment of US$25 billion in 3G networks around the world. There seems little doubt that this delay will affect the company's profits for 2005. By August of this year, Hutchison's as yet unprofitable 3G networks had 9.4 million users across the globe.

According to the Italian press, it is likely that trading in 3 Italia shares will begin on the Milan bourse by mid-February.