(RTTNews) – Conglomerate Hutchison Whampoa Ltd. (HUWHF.PK: News ,HUWHY.PK: News ) said Monday evening that it plans to spin off its ports assets, Hutchison Port Holdings Trust, in a separate listing on the Singapore stock exchange. The company did not disclose the amount of money it hopes to raise from the listing, but media reports said that the IPO could raise up to US$6 billion.

The company intends to use the proceeds from the sale to help pay for expansion plans in ports and other businesses.

Hutchison Whampoa said that on January 14, 2011, it submitted a formal application to the Hong Kong stock exchange for its approval of the proposed transaction. The company is the controlling shareholder of Hutchison Port Holdings or HPH, and currently indirectly owns an 80% effective interest in it.

The ports-to-property conglomerate, owned by billionaire investor Li Ka-Shing, said it will retain a 25% stake in Hutchison Port Holdings Trust, whose principal assets are the deep-water container port operations in Hong Kong and Guangdong province of the People’s Republic of China.

Hutchison Whampoa noted that the spin-off will enable the group to expand its ports, infrastructure and other businesses aggressively, help reduce the group’s overall consolidated debt, and enhance access to capital markets for financing HPH Trust’s future business opportunities. It will also allow the company’s shareholders to continue enjoying the benefits of the growth and development of HPH Trust by retaining a significant unitholding in the ports assets.

HPH holds interests in a total of 308 berths in 51 ports across 25 countries. For the year ended December 31, 2009, the company’s profit was HK$1.83 billion on revenues and other income of HK$10.26 billion.

Hutchison Whampoa noted that as there are no present rules or regulatory regime in Hong Kong which allow securities in the form of the units to be listed, the company will consider a subsequent additional listing of the units on the Hong Kong stock exchange on an appropriate change in the city’s regulatory environment.

The company named DBS Bank Ltd., Deutsche Bank AG and Goldman Sachs (Singapore) Pte. as joint bookrunners and joint issue managers for the offering.

HUWHY.PK last traded at January 14 at US$59.92, up US$1.17 or 1.99% on a volume of 21,360 shares.

by RTT Staff Writer

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