Hutchison Buys Back 4.1% HTIL Stake From DoCoMo

HONG KONG -(Dow Jones)- Hutchison Whampoa Ltd. (0013.HK), the conglomerate owned by billionaire Li Ka-shing, said Wednesday it is buying back a 4.1% stake in its Hutchison Telecommunications International, or HTIL, (2332.HK) unit from Japan's NTT DoCoMo Inc. (DCM).

The acquisition raises Hutchison Whampoa's stake in HTIL to 74.3% from 70.25%.

Hutchison is paying US$166.5 million for DoCoMo's stake.

The move effectively ends the partnership between DoCoMo and Hutchison in the telecommunications arena.

Last year, Hutchison agreed to buy back a 20% stake in Hutchison 3G UK Holdings - its third-generation mobile phone business in the U.K - that the Japanese company acquired in 2000. Earlier this month, Hutchison said it was exercising an option to bring forward the completion of that deal to this year.

As KPN Mobile NV (KPM.YY) of the Netherlands is also selling its 15% stake in Hutchison 3G UK back to Hutchison, the Hong Kong conglomerate will be able to book a HK$9.4 billion non-cash exceptional gain in 2005.

The gain is the result of the elimination of liability on its balance sheet for DoCoMo's and KPN's minority interests in Hutchison 3G UK.

The gain will help offset losses from Hutchison's global 3G operations, which totaled HK$37.50 billion last year.

Acquiring the DoCoMo stake in HTIL involved Hutchison buying 187.9 million shares at HK$6.91 each, representing 95% of the stock's five-day volume weighted average price.

-By Alastair McIndoe, Dow Jones Newswires; 852 2802 7002; alastair.mcindoe@dowjones.com

-Edited by Andrew Bullard

(END) Dow Jones Newswires"

Posted to the site on 25th May 2005