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News Release
(December 5, 2004, Hong Kong and Italy) On Friday, 3 December 2004, an arbitration panel of the International Court of Arbitration of the International Chamber of Commerce issued a ruling in the long-running arbitration proceedings between Hutchison International Limited ("HIL") and Hutchison 3G Italia S.p.A. ("Hutchison 3G Italia") and CIRtel International S. A. ("CIRtel"), a minority shareholder in Hutchison 3G Italia.
The ruling confirms and vindicates the position of HIL and Hutchison 3G Italia on the fundamental issue in dispute, namely that CIRtel has a continuing obligation to provide funding to Hutchison 3G Italia in accordance with its commitments in the shareholders agreement.
The Court determined in its ruling that:
1. CIRtel has an ongoing obligation to provide funding for its EUR367.3 million contribution to Hutchison 3G Italia's 3G licence cost pursuant its irrevocable commitment given in the Hutchison 3G Italia shareholders agreement.
2. That CIRtel is entitled to repayment of its two loans to Hutchison 3G Italia in the sum of EUR367.3 million and EUR5.9 million plus interest thereon from 1 December 2001 at 4.7% per annum, without prejudice to its continuing funding obligation under the shareholders agreement.
3. That the Hutchison 3G Italia Board of Directors has the right and power under the shareholders agreement to call on CIRtel to continue to provide funding in the sum of:
(i) EUR367.3 million for the 3G licence cost, which CIRtel must immediately provide pursuant to its irrevocable funding commitment given in the shareholders agreement; and
(ii) EUR5.9 million for working capital purposes, which CIRtel may opt out of but with a possible consequential dilution of its interest in Hutchison 3G Italia.
4. That the Hutchison 3G Italia Board of Directors may determine whether CIRtel is to provide the funding in the form of equity or shareholder loans and the terms of such funding.
HIL and Hutchison 3G Italia are very pleased with the ruling.
The Board of H3G Italia will meet shortly to consider the manner of exercise of its right to call on CIRtel for funding of its share of the Licence Cost of EUR367.3 million and EUR5.9 million for working capital purposes, as well as the corresponding repayment of CIRtel's outstanding loans in accordance with the ruling.
About Hutchison Whampoa
Hutchison Whampoa Limited (HWL) is a leading international corporation committed to innovation and technology with businesses spanning the globe. Its diverse array of holdings range from some of the world's biggest retailers to property development and infrastructure to the most technologically-advanced and marketing-savvy telecommunications operators. HWL reports consolidated turnover of approximately HK$145 billion (US$18,660 million) and HK$81 billion (US$10,420 million) for the year ended 31 December 2003 and for the six months ended 30 June 2004 respectively. With operations in 42 countries and more than 170,000 employees worldwide, Hutchison has 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.
For more information, please visit www.hutchison-whampoa.com
About Hutchison 3G Italia
3 - Is the commercial brand of Hutchison 3G Italia and its operating subsidiary H3G S.pa.A, the mobile video company in the Italian market. After having won the UMTS license in Italy in November 2000, with the offer of 3.25 billion euros, Hutchison 3G Italia launched its service at the beginning of March 2003 and aimed for the leadership of third generation mobile market. Among its shareholders are prominent leaders in Italy and the world, from the sectors of telecommunications, Internet and new media, publishing and finance. Hutchison Whampoa Limited is the primary shareholder, holding 88.67% of the authorized capital. The other shareholders include CIR, S. Paolo Imi, BMI, RCS Mediagroup, Gemina and Tiscali.
For media enquiries, please contact:
Hutchison Whampoa Ltd
Laura Cheung
Tel: (852) 2128 1289
Pager: (852) 6330 4227
Gian Marco Litrico
Hutchison 3G Italia
Tel: 02 4458.2129
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