Hutchison Essar Signs Agreements to Acquire BPL Mumbai, BPL Cellular and Spacetel
September 26 2005 - 10:54AM
PR Newswire (US)
HONG KONG, Sept. 26 /Xinhua-PRNewswire-FirstCall/ -- Hutchison
Telecommunications International Limited ('Hutchison Telecom';
SEHK: 2332; NYSE: HTX) today announces that Hutchison Essar Limited
('Hutchison Essar' or 'the Company'), its joint venture in India
with Essar Teleholdings Limited ('Essar Group') has entered into a
binding conditional term sheet for the acquisition of BPL Mobile
Communications Limited ('BPL Mumbai') and BPL Mobile Cellular
Limited ('BPL Cellular'). It also announces that Hutchison Essar
has entered into a conditional agreement to acquire Essar Spacetel
Limited ('Spacetel'), a company that has applied for licences in
seven licence areas not presently serviced by Hutchison Essar.
(Photo: http://www.newscom.com/cgi-bin/prnh/20050926/HKM003 ) BPL
Mumbai is the number two mobile telecommunication services operator
in Mumbai with 1.3 million* customers whilst BPL Cellular operates
in three licence areas -- Maharashtra, Tamil Nadu and Kerala -- and
has 1.5 million* customers. Hutchison Essar will pay approximately
US$1,154 million for these transactions, including the assumption
of debts. Spacetel is the applicant for telecommunication services
licences in seven service areas in which the Company does not
currently operate, namely Madhya Pradesh, North East, Himachal
Pradesh, Bihar, Orissa, Assam, and Jammu and Kashmir. Hutchison
Essar will pay approximately US$6 million in cash for Spacetel.
When completed, these acquisitions will immediately lift Hutchison
Essar's customer base to more than 12 million,* and will position
the Company to become a national mobile telecommunication services
operator, giving it the opportunity to cover all 23 licence areas
in the country. Dennis Lui, Chief Executive Officer of Hutchison
Telecom said, "These are defining acquisitions for Hutchison Essar.
By giving us the ability to complete our nationwide coverage, they
position us to capitalise on the tremendous growth opportunities in
India." "This is a major investment for Hutchison Essar and clearly
signals the commitment of its principal shareholders, Hutchison
Telecom and Essar Group, to being a major force in shaping the
mobile telecommunications scene in India," added Mr Lui. The cost
of these acquisitions will be funded by a combination of
shareholder funding and external bank borrowings of Hutchison
Essar. The parties will move to signing definitive agreements in
relation to the acquisition of BPL Mumbai and BPL Celluar as soon
as practicable. Completion of the acquisition of BPL Mumbai and
Spacetel are subject to regulatory approval and other conditions.
About Hutchison Telecommunications International Limited Hutchison
Telecommunications International Limited ('Hutchison Telecom' or
'the Group') is a leading global provider of telecommunication
services. The Group currently offers mobile and fixed-line
telecommunication services in Hong Kong, and operates or is rolling
out mobile telecommunication services in Macau, India, Israel,
Thailand, Sri Lanka, Ghana, Indonesia and Vietnam. It was the first
provider of 3G mobile services in Hong Kong and Israel and operates
brands including "Hutch", "3" and "Orange". Hutchison Telecom is a
listed company with American Depositary Shares quoted on the New
York Stock Exchange under the ticker HTX and shares listed on the
Stock Exchange of Hong Kong under the stock code 2332. A subsidiary
of the Hong Kong-based Hutchison Whampoa Group, Hutchison Telecom
is dedicated to providing superior telecommunication services in
markets with high growth potential. For more information about
Hutchison Telecom, see http://www.htil.com/ . About Hutchison Essar
Limited Hutchison Essar Limited ('Hutchison Essar', 'the Group')
currently operates across 13 telecommunications licence areas in
India through six companies -- Hutchison Essar Limited, Hutchison
Essar Mobile Services Limited, Hutchison Telecom East Limited,
Hutchison Essar South Limited, Fascel Limited and Aircel Digilink
India Limited. As of August 2005, the Group has approximately 9.3
million** mobile users under the Hutch and Orange brands and is one
of the most reputable telecom companies in India. Over the years,
it has been named the 'Most Respected Telecom Company', the 'Best
Mobile Service in the Country' and the 'Most Creative and Most
Effective Advertiser of the Year'. * Figures from Cellular
Operators Association of India, as of August 2005. ** Figures from
Cellular Operators Association of India. Cautionary Statements This
press release contains forward-looking statements. Statements that
are not historical facts, including statements about Hutchison
Telecommunications International Limited's ('the Company') beliefs
and expectations, are forward-looking statements. These statements
are based on current plans, estimates and projections, and
therefore you should not place undue reliance on them.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update publicly any of
them in light of new information or future events. Forward-looking
statements involve inherent risks, uncertainties and assumptions.
The Company cautions you that if these risks or uncertainties ever
materialise or the assumptions prove incorrect, or if a number of
important factors occur or do not occur, the Company's actual
results may differ materially from those expressed or implied in
any forward-looking statement. Additional information as to factors
that may cause actual results to differ materially from the
Company's forward-looking statements can be found in the Company's
filings with the United States Securities and Exchange Commission.
For enquiries, please contact: Mickey Shiu Corporate Communications
Hutchison Telecom Work: +852-2128-3107 Mobile: +852-9092-8233
Email: http://www.newscom.com/cgi-bin/prnh/20050926/HKM003
DATASOURCE: Hutchison Telecommunications International Limited
CONTACT: Mickey Shiu, Hutchison Telecom, +852-2128-3107, or
+852-9092-8233, or Web site: http://www.htil.com/
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