Page 4 - Sphere No.9 (Sep 2003)
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S
PHERE
2
H U T C H I S O N U P D A T E S
Bonds Bonanza
HUTCHISONWHAMPOA LIMITED
C O R P O R A T E
News
HWL Interim Results
Locking in low borrowing costs,
HWL
has
raised US$4.65 billion in four separate
international bond offerings this year.
In July, HWL sold 10-year eurobonds
valued at
E
1 billion (approximately
US$1.15 billion), the largest-ever 10-year
euro-denominated debt offering from Asia.
The lead manager was
HSBC
.
With Hutchison’s business expanding in
Europe, a euro-denominated bond issue
complemented the company’s balance sheet
as it matches assets and liabilities in the
same currency.
Market conditions were seen as favourable
as government bond yields were near
historic lows and yields on investment-
grade corporate debt had narrowed
compared with government debt.
Earlier in the year, HWL issued US$3.5
billion 10-year bonds through three
offerings, the largest-ever dollar-
denominated debt deal from Asia.
Meanwhile, a group of 15 international
and local banks in July signed an
agreement with
Hutchison
International Finance Ltd
. in
connection with a HK$3.8 billion
(approximately US$487 million) five-year
term loan facility guaranteed by HWL.
The facility was oversubscribed at both
the underwriting and general syndication
stages.
Hutchison Whampoa Limited (HWL), one of the largest companies listed on the main board of the
Hong Kong Stock Exchange, is the holding company of the Hutchison Whampoa Group of
companies.As one of the earliest big “hongs,”or trading companies, in Hong Kong,Hutchison’s history
dates back to the 1800s. Today, HWL is a multi-national conglomerate with businesses spanning close to 40
countries.With over 150,000 employees worldwide,Hutchison operates and invests in five core businesses: ports and
related services; telecommunications; property and hotels; retail and manufacturing; and energy and infrastructure.
Its flagship companies include Hutchison Port Holdings, Hutchison Telecom, HutchisonWhampoa Properties,
A.S.Watson, and Cheung Kong Infrastructure. In 2002, HWL’s consolidated revenue was HK$111,129 million
(US$14,247 million).
2003
HK$ million
Profit attributable to shareholders
Earnings per share
6,067
HK$1.42
2002
HK$ million
5,946
HK$1.39
% Change
2%
2%
HWL
has been ranked
the No.1 business in
Hong Kong and No.140
globally in this year’s
BusinessWeek
Global 1000
list.
Forbes
, meanwhile, has
ranked HWL 127 in its
Global 500 list.
Hutchison Whampoa Limited
’s
unaudited profit attributable to shareholders
for the half year ended June 30, 2003
amounted to HK$6,067 million,
(approximately US$777.8 million) compared
to HK$5,946 million in the same period last
year, a 2% increase.
Excluding exceptional gains and 3G start-up
losses, profit attributable to shareholders
actually increased 47%.
The results included a net profit on disposal
of investments and provisions of HK$1,922
million representing a profit of HK$1,683
million on the disposal of the Group’s
European water businesses, a profit of
HK$1,443 million from the disposal of
holdings in
Vodafone Group
and
Deutsche Telekom
, a release of provisions
of HK$1,907 million, and a full write-off of
the Group’s HK$3,111 million investment in
Global Crossing
.
Turnover for the period rose 41% to
HK$65,879 million.
All of the Group’s divisions, except
telecommunications, reported EBIT ahead of
last year.
Cash and liquid investments totalled
HK$165,110 million on June 30, 2003.
For full results, see
whampoa.com/newsDIR/news
The
TOM Group
has purchased a
controlling stake in
Chinese Entertainment
Television Broadcast Ltd.
(CETV).
TOM agreed to issue approximately
21 million TOM shares to
AOL Time
Warner
at HK$2.535 each to acquire a
64% stake in the TV channel, which is one
of four with landing rights in Guangdong
province, southern China.
As part of the deal,TOM will also inject
up to US$30 million over 30 months to
finance CETV’s operations.
TOM will take control of all management
operations including
business development,
programme
production,
advertising sales and
marketing
E - C O M M E R C E
TOM Takes Control of CETV
TOM Posts First Profit
noted
TOM Group
reported a first-time
profit of HK$10. 2 million for the three
months ended June 30, 2003, driven by
strong growth of the Internet business.
The group’s quarterly revenue
amounted to HK$455 million, a 10%
increase over the previous quarter.
Internet revenue alone grew 31%
quarter-on-quarter to HK$124 million.
Revenue for the six months ended June
30, 2003 was HK$867 million, a 28%
increase over the same period last year.
Loss attributable to shareholders in the
first half of 2003 was HK$33 million,
versus HK$125 million for the
corresponding period last year, a 74%
improvement, or HK$92 million.
For full results, see
