Orascom Telecom completes HTIL sale
HWL and Yuda Ltd to buy Orascom's remaining stake in HTIL
Egyptian telco Orascom Telecom Holding (OTH) has agreed to sell its remaining 14.2% stake in Hong-Kong based Hutchison Telecommunications International Ltd, for HK$ 7.5 billion (US$ 960 million).
Orascom is selling the shares to Hutchison Whampoa Ltd (HWL) and Yuda Ltd, a company owned by billionaire Li Ka-shing. HWL will acquire 441 million shares and Yuda will acquire 239 million shares, at a price of HK$11 a share.
"This sale proves Orascom Telecom's ability to achieve high returns for its shareholders," said Naguib Sawiris, chairman and CEO, OTH. "OTH's initial acquisition of HTIL shares was to gain exposure to the Indian market, however, after the sale of the Indian asset, the investment in HTIL became of less strategic value to OTH.
"With the proceeds of the sale, OTH will evaluate investment opportunities including acquisitions of new licenses and established operators of substantial size, as well as evaluating opportunistic repurchases of its GDRs in light of favourable relative market valuations."
OTH originally acquired a 19.3% interest in HTIL from HWL for a US$1.3 billion in 2005.