Orascom Telecom ends investment in Hutchison

07 December 2007
Orascom Telecom has brought its investment in Far East telecoms company Hutchison Whampoa to an end about five months after Hutchison sold its prize asset, the Indian operator Hutch Essar.

The Egyptian telecoms group sold its 14.2 per cent stake in Hutchison Whampoa for HK$7,480m ($960m), the same price that it paid for the shares back on 21 December 2005.
However, Orascom Telecom has made a profit of $600m after charges on its almost two-year exposure to the Far East group, because of a $793m one-off payment it received in July after the sale of Hutch Essar.
Orascom Telecom had no reason to continue investing in Hutchison Whampoa after the sale of its Indian operation, says Naguib Sawiris, chairman and chief executive.
“Orascom Telecom’s initial acquisition of shares was to gain exposure to the Indian market. However, after the sale of the Indian asset, the investment in Hutchison Whampoa became of less strategic value,” he says.

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