In February 2001, in a separate transaction, CKH and Hutchison jointly purchased approximately 23.8 million shares of priceline.com common stock from priceline.com and an additional 11.3 million shares of priceline.com common stock from Mr. Walker and his trust. As a result of February’s and today’s transactions, CKH and Hutchison each holds approximately 15 percent (together approximately a combined 30 percent) equity interest in priceline.com. Separately, Hutchison also owns approximately 65 percent of Hutchison-Priceline Limited (HPL), the companies’ Asia venture.
We believe that the increased strategic commitment by Cheung Kong and Hutchison to priceline.com will provide long-term benefit to priceline.com and its shareholders, said priceline.com Chairman Richard S. Braddock. The transaction itself was accomplished without involving the public markets, which minimized any potential share price dilution. And we put those shares into the hands of committed strategic partners who have existing global strengths in industries and technologies important to priceline.com’s future growth. Priceline.com, CKH and Hutchison share a vision and commitment to the success of priceline.com’s business model, and we welcome their increased commitment to our business.
Canning Fok, Group Managing Director of Hutchison and Director of CKH said, The more we have come to know priceline.com through our seat on their board and our venture in Asia, the more confident we are about priceline.com, its business model, its brand and its long term growth prospects. Priceline.com reported very encouraging results for the first quarter and we are pleased to increase our commitment to priceline.com.
In connection with this stock acquisition, CKH and Hutchison will receive a total of two additional seats on priceline.com’s board, on top of a board seat which Hutchison has already occupied.
