In April 1999, BT paid HK$3bn ($380m) for a 20.8% stake in SmarTone, a move designed to position the UK-based incumbent for entry into the mainland Chinese market.
Now however, BT is prepared to sell its stake for HK$1.03bn ($132m), after the cellular unit of Sun Hung Kai Properties Ltd (Cellular 8 Holdings Ltd), raised its takeover bid for SmarTone by 3% to HK$8.50 ($1.09) per share. The acquisition of BT’s stake, will give Sun Hung Kai Properties almost 51% of SmarTone, Hong Kong’s third-largest mobile phone company.
For the past year, BT has been involved in a number of asset disposals, most recently offloading its 26% stake in French telecom operator, Cegetel SA, to Vivendi Universal SA for 4bn euros ($4bn). The disposals are part of BT’s debt-reduction program, after an over-ambitious overseas expansion left it mired in debt.
BT still owns 16.6% of South Korea’s LG Telecom, an 11.9% stake in Singapore’s Starhub, and minor investments in three Japanese mobile operators.
Source: Computerwire
