irasia.com - Hutchison Whampoa Limited

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HUTCHISON WHAMPOA LIMITED
(Incorporated in Hong Kong with limited liability)

CONNECTED TRANSACTION

The board of directors of the Company announces that on 3 May 2001, HCAPL, an indirect wholly owned subsidiary of the Company, agreed to make available a loan of up to A$196 million (approximately HK$796 million) to HTAL. HTAL, an indirect non wholly owned subsidiary of the Company listed on the Australian Stock Exchange, is indirectly owned as to approximately 57.8% by the Company, directly owned as to approximately 12.5% by Leanrose and approximately 29.7% owned by the public.
Leanrose is a connected person of the Company by virtue of it being (i) a substantial shareholder of HTAL and (ii) an associate of Mr Barry Roberts-Thomson, who is a director of HTAL. The Loan constitutes a connected transaction of the Company under the Listing Rules. As the Loan amount is within the de-minimis exemption in respect of connected transactions under Rule 14.25(1) of the Listing Rules, details of the Loan will be included in the Company's next published annual report and accounts in accordance with Rule 14.25(1)(A) to (D) of the Listing Rules.

THE LOAN

Date: 3 May 2001

Parties

Borrower: Hutchison Telecommunications (Australia) Limited ("HTAL"), an indirect non wholly owned subsidiary of Hutchison Whampoa Limited (the "Company").

Lender: Hutchison Communications (Australia) Pty Ltd. ("HCAPL"), an indirect wholly owned subsidiary of the Company.

Loan Amount: Up to $196 million in Australian dollars, equivalent to approximately HK$796 million (the "Loan").

Purpose: To provide short term funding to HTAL for its acquisition of the spectrum licences (the "Licences") for the use of radio spectrum in the 2100 megahertz band in the greater metropolitan regions of Sydney, Melbourne, Brisbane, Adelaide and Perth (the "Licensed Areas").

Nature: The Loan is an unsecured short term bridging facility, which bears interest at commercial rates computed by reference to the bank bill rate determined by an independent financial institution by reference to the Reuters screen BBSY page at or about 10:30 am (Sydney time) on the drawdown date under the Loan; or an interest rate determined by such independent financial institution to be its costs of funds if such reference is not available or does not reflect its costs of funds.

REASONS FOR ENTERING INTO THE CONNECTED TRANSACTION

The directors of the Company (the "Directors") consider that the provision of the Loan is in the interests of the Company in that the Loan will enable its subsidiary, HTAL, to fund the purchase of the Licences. The spectrum the subject of the Licences will be used for a high speed data network in the Licensed Areas.

The Directors, including the non executive Directors, consider that the Loan is upon normal commercial terms and that the terms of the Loan are arrived at after arm's length negotiations between the parties and are fair and reasonable insofar as the shareholders of the Company are concerned.

GENERAL

HTAL, whose shares are listed on the Australian Stock Exchange, carries on the business of providing telecommunications services in Australia.

Leanrose Pty Limited ("Leanrose") is a connected person of the Company by virtue of it being (i) a substantial shareholder of HTAL and (ii) an associate of Mr Barry Roberts-Thomson, who is a director of HTAL. The Loan constitutes a connected transaction of the Company under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). As the Loan amount is within the de-minimis exemption in respect of connected transactions under Rule 14.25(1) of the Listing Rules, details of the Loan is required to be disclosed in this announcement and will be included in the Company's next published annual report and accounts in accordance with Rule 14.25(1)(A) to (D) of the Listing Rules.

By Order of the Board

Edith Shih
Company Secretary

Hong Kong, 3 May 2001

22/F, Hutchison House, 10 Harcourt Road, Hong Kong. Tel: 2128 1188 Fax: 2128 1705
Website: http://www.hutchison-whampoa.com

Please also refer to the published version of this announcement in Hong Kong iMail and Sing Tao Daily.

Source: Hutchison Whampoa Limited

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Date:	3 May 2001
Parties
Borrower:	Hutchison Telecommunications (Australia) Limited ("HTAL"), an indirect non wholly owned subsidiary of Hutchison Whampoa Limited (the "Company").
Lender:	Hutchison Communications (Australia) Pty Ltd. ("HCAPL"), an indirect wholly owned subsidiary of the Company.
Loan Amount:	Up to $196 million in Australian dollars, equivalent to approximately HK$796 million (the "Loan").
Purpose:	To provide short term funding to HTAL for its acquisition of the spectrum licences (the "Licences") for the use of radio spectrum in the 2100 megahertz band in the greater metropolitan regions of Sydney, Melbourne, Brisbane, Adelaide and Perth (the "Licensed Areas").
Nature:	The Loan is an unsecured short term bridging facility, which bears interest at commercial rates computed by reference to the bank bill rate determined by an independent financial institution by reference to the Reuters screen BBSY page at or about 10:30 am (Sydney time) on the drawdown date under the Loan; or an interest rate determined by such independent financial institution to be its costs of funds if such reference is not available or does not reflect its costs of funds.