New World order: shareholders approve CSL-NWM merger

24 Mar 2006

The shareholders of Hong Kong-based mobile operator New World Mobility (NWM) have approved the merger of the business with rival cellco Hong Kong CSL, a subsidiary of Australian telco Telstra. NWM’s parent, blue-chip developer New World Development, forged an agreement with Telstra in November to merge the two units and create the island’s largest wireless company with around 2.5 million subscribers. The companies signed a non-binding memorandum of understanding (MoU) under which Telstra took 76.4% of the equity in the merged operation and New World kept the remaining 23.6%. Norman Wai, NWM’s CEO, said he expects the merger to be completed on 31 March, adding that he would become a director of the new company, named CSL New World, though he would not be involved in its daily running.

Hong Kong