HONG KONG (22 March 2000) - Hutchison Whampoa Limited ("HWL") today announced that it has entered into an agreement with Goldman Sachs Equity Securities (UK) Ltd and Deutsche Bank A.G. London for the sale of 925 million Ordinary Shares in VOD for net proceeds of approximately GBP 3.2 billion (approximately HK$ 39 billion). VOD is a public limited company incorporated under the laws of England and Wales, with its Ordinary Shares traded on the London Stock Exchange and American Depositary Receipts representing Ordinary Shares traded on the New York Stock Exchange.
The transaction will result in an exceptional profit to HWL of approximately HK$1.6 billion. The proceeds of approximately HK$39 billion are expected to be utilized to fund HWL's planned expansion into advanced and 3rd generation wirefree telecommunications businesses around the world, and in particular in Europe.
Mr. Canning Fok, Group Managing Director of HWL, said:
"Given our existing global wirefree telecommunications operations and interests, we believe that we are well positioned to participate fully in the wirefree future. We expect to do this through the operation of 3rd generation and other advanced technology networks that will offer customers around the world a new and exciting array of wirefree internet and multi-media products and services in the coming years".
Mr. Fok added "We see this transaction as a tactical asset re-allocation to fund our initiatives in this area globally, and in particular in Europe".
Prior to today's transaction, HWL held approximately 5.14% of VOD. Following the sale, HWL will remain one of VOD's largest shareholders with a holding of approximately 3.58%.
"We consider our remaining holding in VOD to be an excellent investment, which we plan to retain." said Mr. Fok, adding " I do not foresee any near term requirement to reallocate any further portion of this valuable part of our global telecommunications asset portfolio".
The shares referred to herein have not been registered under the United States Securities Acts of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
For media enquiries, please contact:
Laura Cheung Tel: 2128 1289
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