Proposed acquisition of CSL New World Mobility Limited by HKT
HKT has entered into an agreement to acquire the entire share capital of CSL New World Mobility Limited (CSLNW). Details of the proposed acquisition are provided in an announcement which was filed with the Hong Kong Stock Exchange this morning.
Mr. Richard Li, HKT Chairman, said, “The proposal is in line with HKT’s objectives of investing in businesses which provide holders of Share Stapled Units with stable and regular distributions as well as long-term distribution growth. The directors believe the proposal is in the interests of the unit holders.”
Mr. Alex Arena, Group Managing Director of HKT, said, “We are pleased to be able to make a proposal to bring CSLNW back into the HKT family. This transaction will enable us to grow HKT and also enable us to provide better service to customers of both HKT and CSLNW.”
The combined market share of HKT and CSLNW in the local mobile market is estimated to be 31%*. HKT believes that no significant competition concerns arise in relation to the proposed acquisition. Nevertheless, as part of HKT’s application to the Communications Authority for the necessary regulatory approval, HKT has voluntarily offered certain pro-competition measures. These include a commitment to maintain the wholesale services provided by HKT and CSLNW to resellers, MVNO operators as well as network sharing arrangements, and HKT has offered to return to the Government an additional 2 x 5 MHz of 3G spectrum, which is over and above the 2 x 10 MHz that the Government proposes to take back from HKT and CSLNW, when the spectrum licenses expire in 2016. HKT has also offered not to participate in the bidding for 3G spectrum to be returned by itself or other 3G operators. HKT looks forward to receiving the consent of the Communications Authority in due course.
*excluding customers of MVNOs and resellers.
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