NEC Buys Stake in Hutchison 3G License Holder

NEC has announced that it is taking a 5% stake in both the Hong Kong & Macau operator, Hutchison Telephone, and the Hong Kong 3G license holder, Hutchison 3G HK Holdings for a total cash consideration of US$73 million.

As part of this transaction, HWL's interest in HTCL and H3G HK will change from 74.63% to approximately 71%, whilst NTT DoCoMo's stake will change from 25.37% to approximately 24% for both companies.

"Through this investment, NEC intends to create a strong strategic partnership with the Hutchison Group by providing comprehensive support for Hutchison's worldwide 3G businesses, and to spur the creation of innovative mobile Internet services." said Koji Nishigaki, President of NEC Corporation.

"NEC expects this partnership to accelerate the adoption and expansion of 3G business in the world. We will continuously provide reliable and high quality infrastructure system and handsets backed by our extensive know-how and expertise in the mobile Internet field. It is our aim to for NEC to become a leading 3G total solution provider and we are pleased to be partnering with the world's leading 3G operator."

Canning Fok, Group Managing Director of Hutchison Whampoa said, "I am very proud to welcome NEC as our new strategic partner in our Hong Kong mobile business. NEC is the world's top leading providers of technology solutions with core business interest in the mobile Internet industry. We look forward to continue working with NEC, one of our key suppliers of 3G infrastructure systems and 3G devices on a global basis, in the worldwide rollout of our 3G services. Both corporations share a similar vision for 3G and certainly this partnership will help us fulfil our mission in being the pathfinders of this new medium."

NEC is already the supplier of 3G infrastructure systems and more than one million of 3G devices for Hutchison 3G operations. Currently, NEC constructs a significant portion of Hutchison's 3G network infrastructure in Europe and will provide Hutchison with its maiden batch of handsets for the first phase of the 3G service rollout in October 2002.'"

Posted to the site on 3rd October 2002