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(Hong Kong, 7 November 2003) - Hutchison Whampoa (HWL) and KPN Mobile (KPN) have resolved their disputes regarding Hutchison 3G UK Holdings Ltd (H3G UK). In a Sale and Purchase Agreement signed today, KPN will sell its entire 15% shareholding in H3G UK to HWL for a total cash consideration of £90 million. The price was arrived at against the background of the dispute and court proceedings between HWL and KPN and does not involve any actual valuation of H3G UK.
Upon the signing of the agreement, £60 million was paid to KPN and the remaining balance will be paid in three equal installments of £10 million in 2005, 2006 and 2007. Ownership of KPN's shares in H3G UK will pass to HWL on payment of the final installment.
In the interim period prior to transfer of the shares to HWL, KPN will continue to receive any dividends that will be declared and payable by H3G UK. However, neither KPN nor HWL will exercise any voting rights in respect of the shares. Upon completion of the transaction, HWL's shareholding in H3G UK will increase from 65% to 80%.
As part of the resolution of the disputes, both parties have discontinued the court proceedings instituted by them in relation to their disputes.
"Hutchison is happy to put this dispute behind us and increase our interests in H3G UK at a very attractive price. This represents an excellent transaction for us. We remain confident that 3 will have a promising prospect and will create long term value for our shareholders," commented HWL Group Managing Director Canning Fok.
About Hutchison Whampoa Limited
Hutchison Whampoa Limited (HWL), one of the largest companies listed on the main board of the Hong Kong Stock Exchange, is the holding company of the Hutchison Whampoa Group of companies. As one of the earliest big "hongs", or trading companies, in Hong Kong, Hutchison's history dates back to the 1800s. Today, HWL is a multi-national conglomerate with businesses spanning close to 40 countries. With over 160,000 employees worldwide, Hutchison operates and invests in five core businesses: ports and related services; telecommunications; property and hotels; retail and manufacturing; and energy and infrastructure.
Its flagship companies include Hutchison Port Holdings, Hutchison Telecom, Hutchison Whampoa Properties, A. S. Watson, and Cheung Kong Infrastructure. In 2002, HWL's consolidated revenue was HK$111,129 million (US$14,247 million).
For more information, please visit www.hutchison-whampoa.com
About Hutchison 3G UK Holdings Ltd (H3G UK)
A subsidiary of HWL, H3G UK is the immediate holding company of the UK Operating company which holds a third generation telecommunications (3G) licence in the UK and carries on the business of 3G mobile multimedia services in the UK under the brand name 3.
For further enquiries, please contact:
Laura Cheung
Hutchison Whampoa Ltd
Tel: (852) 2128 1289
Pager: (852) 7318 4778
Fax: (852) 2128 1766
Email: laurac@hwl.com.hk
Nora Yong
Hutchison Whampoa Ltd
Tel: (852) 2128 1363
Pager: (852) 7229 4992
Fax: (852) 2128 1766
Email: noray@hwl.com.hk
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