BT Sells Hong Kong Mobile Stake

The BT Group has agreed to sell its 21% stake in Hong Kong's GSM network, SmarTone for US$132 million. The price works out at US$1.09 per share, and is about a third of the US$3.20 that BT paid for the stake in April 1999. The sale is to Hong Kong's Sun Hung Kai Properties (SHKP) and brings their holding to just under 51%.

SHKP raised an existing offer for the stake from HK$8.25 to HK$8.50 per share, after receiving an irrevocable undertaking from BT that it would tender for acceptance of its entire shareholding of SmarTone at the revised offer price.

SHKP says that it continues to believe in the future prospects of SmarTone and presently intends to hold SmarTone's shares as long-term investments. The solid balance sheet of SmarTone will further strengthen SHKP's financial position upon SmarTone becoming a subsidiary. The Company also believes the facilitating of BT's exit of SmarTone will be beneficial to both SmarTone and SHKP. It is the intention of the Company to maintain the public listing of SmarTone.

BT says that the sale is a part of its programme of non-core asset disposals and another step in its debt reduction programme."

Posted to the site on 3rd January 2003