Hong Kong Peoples Telephone Holders OK China Mobile Buyout Offer

HONG KONG -(Dow Jones)- Independent shareholders of China Resources Peoples Telephone accepted a buyout offer from China Mobile (Hong Kong) Ltd., the companies said Friday.

China Mobile, China's largest mobile carrier by subscribers, in October offered to buy out the entire share capital of Peoples Telephone for HK$3.38 billion, or HK$4.55 a share. China Mobile previously had no stake in the Hong Kong carrier.

Shares of Peoples Telephone closed at HK$4.50 Thursday, unchanged from the previous day.

In a statement to the Hong Kong stock exchange, the companies said they received acceptances from 99.68% of Peoples Telephone's shareholders. A buyout deal can be approved only if more than 90% of minority shareholders accept it.

Trading in Peoples Telephone will be suspended beginning Friday in preparation of the withdrawal of its listing, which is expected to be finalized at the end of March, the companies said.

Peoples Telephone is one of six mobile companies in Hong Kong, where every 10 people own 12 mobile phones. Unlike its bigger rivals, it doesn't have a license to offer third-generation mobile services.

The four 3G license holders are Hutchison Whampoa, Hong Kong CSL, a unit of Telstra Corp., SmarTone Telecommunications Holdings and Sunday Communications, which is a 79%-owned unit of PCCW.

Hong Kong's remaining mobile phone operator is New World Mobile Holdings. Last month, Telstra said it will merge CSL Hong Kong with New World Mobile, creating Hong Kong's largest cellular operator by subscribers.

China Mobile said earlier the takeover of Peoples Telephone is an opportunity to enlarge its footprint in Hong Kong, and could create synergies in procurement, marketing and product development.

-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com

-Edited by Theresa Davidovitz

(END) Dow Jones Newswires"

Posted to the site on 13th January 2006