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Hong Kong Giant CK Hutchison Sets Up Telecom Holding Company
Signage is illuminated at night at the Cheung Kong Center building, which houses the head offices of CK Asset Holdings Ltd., in Hong Kong, China, on Monday, July 30, 2018. CK Asset is scheduled to report half-year earnings results on Aug. 2. Photographer: Paul Yeung/Bloomberg

Hong Kong Giant CK Hutchison Sets Up Telecom Holding Company

Ports-to-telecoms conglomerate CK Hutchison Holdings Ltd. said it is moving two of its main telecom assets into a single newly formed holding company, as part of a process to lower costs and improve efficiencies.

CK Hutchison, the flagship of Hong Kong billionaire Li Ka-shing, said that CK Hutchison Group Telecom Holdings (CKHT) was formed last month as part of the restructuring. The holding company’s assets will include the parent’s 3 Group Europe operation, which contains telecom networks in Britain, Italy, Sweden, Denmark, Austria and Ireland; and a network in Hong Kong owned by the publicly listed Hutchison Telecommunications Hong Kong Holdings Ltd.

Officials revealed the plan Thursday at an investor conference to discuss the company’s first-half results, explaining the move would provide more clarity for investors, reduce costs and debt, raise operational efficiency and boost its future cross-border business opportunities. The move will also give the new company more flexibility in fundraising. Telecom is one of CK Hutchison’s five core businesses, accounting for more than 20% of its revenue.