CK Hutchison Holdings Ltd. formed a new holding company to consolidate its telecommunications operations in Europe, Hong Kong and Macau under one holding entity.
Formed in July, CK Hutchison Group Telecom Holdings will repay approximately €10 billion in external debt of Hutchison's Italian subsidiary Wind Tre SpA and will set up a separate company to house its European tower assets.
The new telecommunication infrastructure company will be called CK Hutchison Networks Holdings. It will group and manage Hutchison's 28,500 tower assets across Europe, with an option to add the 9,300 sites Hutchison owns in Asia.
The creation of the infrastructure company is expected to be completed in late 2019 or early 2020.
CK Hutchison said the new organization structure and the refinancing transaction is expected to generate financing cost savings from 2020 onwards and rationalize its investments for network, IT platform and infrastructure.
The announcement came alongside the company's first-half results, which recorded profit attributable to ordinary shareholders of HK$18.32 billion, an increase of 2% from HK$18.02 billion in the year-ago period.