Shareholders of Hutchison approve buyout

Hutchison Telecommunications International Ltd shareholders backed the HK$4.23 billion ($544 million) buyout offer from parent Hutchison Whampoa Ltd, clearing the way for billionaire Li Ka-shing to reorganize his phone operations.

More than 90 percent of the votes cast at a shareholders meeting in Hong Kong supported the offer, Henry Chan, a private investor who holds 2 million shares in the phone company, said after the ballot Wednesday. That was higher than the 75 percent threshold required to ratify the offer.

Hutchison Whampoa will gain increased control of Hutchison Telecom's phone businesses in emerging Asian markets, including Indonesia and Sri Lanka, after the buyout.

Hans Leung, a spokesman at Hutchison Whampoa, declined to confirm the shareholder vote, saying a statement about the result will be filed to the Hong Kong stock exchange later.

Cathay resumes developing HK cargo terminal

Cathay Pacific Airways Ltd, Hong Kong's dominant air carrier, has resumed development of a HK$5.5 billion ($707 million) air cargo terminal in Hong Kong, the company's chairman said Wednesday. "The main contract for this development has been let and we are on schedule for opening in 2013," Chairman Christopher Pratt told reporters in Hong Kong. He added that by that time the company's cargo fleet will have added another 10 Boeing 747-8 aircraft. Cathay said its passenger numbers in April fell 3.6 year on year to 2.17 million because of disruption caused by the volcano ash cloud in Europe. It cancelled 79 passenger flights to Europe and delayed 14 other flights because of the ash cloud, affecting more than 20,000 passengers. Cathay also cancelled 21 cargo flights, but cargo and mail volume rose 24.1 percent to 152,808 tons last month over the low base of the previous year.

China Renhe to price US$ bonds around 12%

Hong Kong-listed mainland underground mall developer Renhe Commercial Holdings plans to price its 5-year benchmark-sized dollar bonds at around 12 percent, another sign that the debt market is stabilizing. The bonds will be priced in a range of 11.75-12.25 percent as early as Wednesday, the source said. The issuer Friday delayed the pricing, citing poor market conditions and after bond spreads widened to 10-month highs on concerns the sovereign debt crisis in the euro zone will prompt investors to pull their funds out of Asia.

StandChart said to consider bid for Nedbank

Standard Chartered Plc, the British lender that earns three-quarters of its profit in Asia, may make an offer for South Africa's Nedbank Group Ltd, said a person with knowledge of the situation.

The deliberations are at an early stage and may break down, said the source, who declined to be identified because the talks are private. Old Mutual Plc, Africa's biggest insurer, owns 52 percent of Nedbank, which has a market value of about 71.5 billion rand ($9.5 billion).

Old Mutual stands by its decision to discuss any changes Nedbank Chief Executive Officer Mike Brown would like to make to the lender's strategy, spokesman Patrick Bowes said by phone from London Wednesday. He declined to comment on a possible bid from Standard Chartered.

Agencies - China Daily

(HK Edition 05/13/2010 page2)