CSL New World ownership structure to change

23 Nov 2006

New World Mobile Holdings confirmed this morning that it has agreed to sell its 23.6% stake in Hong Kong’s largest cellco, CSL New World Mobility, to its parent company, Hong Kong conglomerate New World Development, for HKD2.5 billion (USD320 million). New World Mobile said a portion of the proceeds from the stake transfer will be used to repay loans to its parent. It will use HKD174.8 million of the proceeds to pay a special dividend to minority shareholders. CSL New World Mobility is 76.4% owned by Australia’s Telstra.

Hong Kong, CSL (now part of HKT/PCCW)