Qualcomm Inc (QCOM)

[khemara_qc]

DoCoMo sells stake in U.K. 3G carrier


May 27, 2004 1:34 PM EST

TOKYO—NTT DoCoMo sold its 20-percent stake in Hutchison 3G UK Holdings Ltd. to Hutchison Whampoa Ltd. for $220 million in a transaction that has been expected by market watchers.
DoCoMo has been looking to unwind its involvement in the U.K. third-generation operator for months, and the deal marks the second shareholder that has left the company, leaving only Hutchison in the venture, which once included KPN Telecom as well. The U.K. UMTS provider has offered its service for more than a year, but has added subscribers at a much slower pace than it originally forecast.

Under the terms of the agreement, DoCoMo will receive payment in three installments either in cash or shares of Hutchison Telecommunications International Ltd., a Hutchison subsidiary that has applied for a listing on the Stock Exchange of Hong Kong. The third and final payment will be made in December 2006.

As part of the agreement, a $367 million shareholder loan provided by DoCoMo to Hutchison 3G U.K. in May 2003 was transferred to Hutchison Europe Telecommunications, another Hutchison subsidiary.

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