Hutchison Whampoa has made a HK$4.23 billion (€381m) offer to take its Hutchison Telecommunications International unit private.
The offer of HK$2.20 (€1.98) cash per share represents a 37% premium over the share price the day before HTIL suspended its shares. Hutchison Whampoa already holds just over 60% of HTIL's shares. The company said it would not be increasing its offer.
Li Ka-shing's group said it was taking the international unit private to have more capital for growth. HTIL has been progressively shedding its global units including India and Israel and spun off its Hong Kong and Macau activities into a separate company.
"The strategic transactions have also transformed the Hutchison Telecom Group's business portfolio and impacted its short- to medium-term financial prospects," Hutchison Telecom said in a statement.
All of its current operations across four countries Thailand, Sri Lanka, Indonesia and Vietnam contribute negative cash flow.
The companies said given Hutchison Telecom's high capital-expenditure requirements, lack of surplus cash for dividends, and short- and medium-term volatility, it makes the firm "less suited to remain a publicly listed entity."
Goldman Sachs (GS.N
) advised Hutchison Whampoa on the deal.