HUTCHISON WHAMPOA LIMITED
(Incorporated in Hong Kong with limited liability)
DISCLOSABLE TRANSACTION
| The Company and one of its wholly-owned subsidiaries have entered into an agreement with Goldman Sachs and Deutsche Bank to sell part of the Company's Vodafone Shares. |
PART DISPOSAL OF VODAFONE SHARES
On 22 March 2000, the Company and one of its wholly-owned subsidiaries entered into an agreement with Goldman Sachs and Deutsche Bank for the sale of 925 million Vodafone Shares for an aggregate cash consideration of approximately ?/font>3.2 billion (approximately HK$39.0 billion). The Vodafone Shares to be acquired by the Purchasers represent approximately 30 per cent of the Vodafone Shares issued to the Company's subsidiaries in February 2000 under a revised offer by Vodafone for the Mannesmann Shares.
NO CONNECTION BETWEEN THE PARTIES
The Purchasers are independent of and not connected with any of the Directors or the chief executive or substantial shareholders of the Company or any of its subsidiaries or associates as defined in the Listing Rules.
REASONS FOR AND BENEFITS OF THE TRANSACTION
The part disposal of the Vodafone Shares will provide further resources to the Company for its general corporate purposes including the expansion of its core telecommunications business world wide.
FINANCIAL EFFECTS
The transaction is expected to result in a profit of approximately HK$1.6 billion. The cost of the Company's interests in the Vodafone Shares being disposed is approximately HK$37.4 billion in the books of the Company. The Company has not received any dividends from its holding of Vodafone Shares and therefore has not recorded any income from this investment.
INFORMATION FOR SHAREHOLDERS
The part disposal of the Vodafone Shares is a disclosable transaction under the Listing Rules as the consideration receivable represents more than 15 per cent of the consolidated assets of the Company as at 31 December 1998 as adjusted to take into account subsequent transactions pursuant to Rule 14.04(1) and (6) of the Listing Rules. The Company will send a circular to shareholders shortly containing further details of the transaction.
TERMS USED IN THIS ANNOUNCEMENT
For the purposes of this announcement amounts in have been translated into HK$ at the rate of 1 = HK$12.212.
Edith Shih Hong Kong, 22 March 2000
"Company" means Hutchison Whampoa Limited "Deutsche Bank" means Deutsche Bank AG London "Directors" means the directors of the Company "Goldman Sachs" means Goldman Sachs Equity Securities (U.K.) Ltd. "Listing Rules" means the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited "Mannesmann" means Mannesmann AG "Mannesmann Shares" means ordinary shares of no par value of Mannesmannv
"Purchasers" means Deutsche Bank and Goldman Sachs "Vodafone" means Vodafone AirTouch Plc "Vodafone Shares" means new ordinary shares of US$0.10 in Vodafone "HK$" means Hong Kong dollars "" means pounds sterling
By Order of the Board
Company Secretary
Source: Hutchison Whampoa Limited
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