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.