KPN Sells 3G Stake

KPN Mobile and Hutchison Whampoa have resolved their disputes regarding Hutchison 3G UK, in which KPN Mobile has a 15% stake.

KPN Mobile will transfer its shareholding in Hutchison 3GUK to Hutchison Whampoa for US$105 million and three further planned payments each of US$10.5 million in 2005, 2006 and 2007. HWL will assume legal ownership of the shares after the final payment and KPN Mobile will not exercise its rights in respect of the shares in the interim. The court actions and shareholders agreement between the parties have been terminated.

Upon completion of the transaction, Hutchison Whampoa's shareholding in H3G UK will increase from 65% to 80%.

"Hutchison is happy to put this dispute behind us and increase our interests in H3G UK at a very attractive price. This represents an excellent transaction for us. We remain confident that 3 will have a promising prospect and will create long term value for our shareholders," commented HWL Group Managing Director Canning Fok.

Hutchison Whampoa had begun legal action after KPN refused to fund a further investment of US

Posted to the site on 10th November 2003