Hong Kong group sells stake in mobile venture with Telstra

24 Nov 2006

New World Mobile Holdings has agreed to sell its 23.6% stake in a Hong Kong mobile phone joint venture with Australia's Telstra to its parent, New World Development, a Dow Jones report said.

The Dow Jones report said New World Holdings agreed to sell the stake for HK$2.50 billion ($321 million).

After completing the sale of its stake in CSL New World Mobility Group, New World Mobile plans to pay its shareholders a special dividend of HK$1.20 per share, the Dow Jones report said.

As part of the deal, a non-executive director of New World Mobile, Simon Lo, has agreed to buy New World Development's 58.04% stake in its mobile unit, the report added.

As required by Hong Kong stock exchange regulations, Lo will make an unconditional mandatory general offer for all outstanding shares of New World Mobile for HK$0.65 ($0.08) a share.

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