3 Calls for More Cash for its UK Network

Hutchison 3G UK called on its parent shareholders to invest a further US$1.6 billion to help fund the company's network rollout and operating costs. DoCoMo, which owns 20% of the UK network has been asked to put up US$320 million, while KPN, who wrote off the value of their 15% stake has been asked for a further US$240 million. Hutchison Whampoa will provide the remaining funds.

Hutchison 3G's call is said to be previous arrangement that could be called upon should certain unspecified pre-conditions are fulfilled. DoCoMo said that it would announce its response to the Funding Call Notice by the middle of April. KPN says that it is studying the request to see if it has met the preconditions and will also respond by the middle of April.

If KPN and/or DoCoMo decide not to put up the additional cash, then Hutchison Whampoa's stake would increase in the company. Considering that KPN puts a zero value on its holding in Hutchison 3G UK, it seems likely that the company will try to avoid having to see its cash investment rise further."

Posted to the site on 10th March 2003