Hutchison Whampoa to sell a stake in 3G Australia

Hutchison Whampoa announced that it intends to sell a ten percent share in Hutchison Telecommunications Australia to New Zealand based Telecom Corporation.

The 297.3 million dollar deal will also allow Telecom Cooperation to increase it’s stake up to 19.9 per cent in the future.

Hutchison Whampoa will also benefit from a one off, one hundred and sixteen million dollar gain from the deal.

The deal will reduce Hutchison Whampoa’s stake in HTAL from 57.8 percent to 52 percent.

3 Australia is it’s third largest network after the UK and Italy, with the UK having fifty three percent of the companies subscribes alone.

HTAL lost 19.9 A$759.4m last year, Hutchison’s 3G investments have been a big drain on it’s resources with the 3G group loosing one point four billion dollars last year.

They insist they are committed to turning the companies around, and will not sell them.