New World Development Company Limited ("NWD", "the Group"; Stock Code: 17.HK) announces that NWD and Upper Start Holding Limited ("Upper Start"), a wholly-owned subsidiary of NWD, entered into the Share Purchase Agreement with HKT Limited ("HKT"), CSL New World Mobility Limited ("CSLNW"), Telstra Holdings (Bermuda) No. 2 Limited and Telstra Corporation Limited in which NWD and Upper Start are conditionally selling its 154,789,174 shares in CSLNW, representing approximately 23.6% of the issued share capital of CSLNW, for a consideration of approximately US$572.3 million (equivalent to approximately HK$4,452.5 million).
Dr Henry Cheng, Chairman and Executive Director of New World Development, said, "The proposed sale of mobile telecommunication business, which is the Group's non-core asset, goes in line with the Group's business development strategy. The terms are considered fair and reasonable and are in the interests of the Group and shareholders of NWD as a whole."
Adrian Cheng, Executive Director and Joint General Manager of New World Development, said, "Through the proposed sale of mobile telecommunication business, the Group can further consolidate its business structure and strengthen its overall financial position. The sale proceeds from the disposal will enable the Group to deploy more capital into its core business, thereby enhancing shareholder returns."
The proposed disposal is subject to the approval of the Office of the Communications Authority of HKSAR Government and HKT and PCCW Limited security holder.
CSLNW primarily provides mobile telecommunications services through 4G, 3G and 2G networks and the sale of mobile telecommunications products to customers in Hong Kong under three mobile brands: "1O1O", "one2free" and "New World Mobility". Upper Start is a wholly-owned subsidiary of NWD and its only operation is the mobile telecommunications business in this disposed sale.
New World Development Company Limited
New World Development Company Limited ("The Group"; Stock Code: 17.HK) is a leading conglomerate based in Hong Kong. The Group was founded in 1970 and publicly listed in Hong Kong in 1972. It is a constituent stock of the Hang Seng Index with a total asset value of HK$332.2 billion as at 30 June 2013.
For more than four decades, the Group has expanded from a single focus on the property business to four core areas: property, infrastructure & service, department store and hotel. As at 30 June 2013, the Group has an effective interest of approximately 61.1% in NWS Holdings Limited (Stock Code: 659.HK), approximately 69.8% in New World China Land Limited (Stock Code: 917.HK) and approximately 72.3% in New World Department Store China Limited (Stock Code: 825.HK).