Pccw Limited · HKEX:8
Pccw — Merger or Acquisition (January 2005)
11 slides from Pccw's merger presentation, Jan 20, 2005
Slide 1: China Netcom Group and PCCW Strategic Alliance
China Netcom Group and PCCW Strategic Alliance Analyst Presentation January 20, 2005
Slide 2: Essence of the Transaction
Essence of the Transaction Accelerating PCCW’s China Strategy y China Netcom Group subscribing for 20% new shares in PCCW y Jointly developing business opportunities in China Pace Setting Significance y PCCW is the only international telecom operator with a 20% strategic equity investment from a maj
Slide 3: Key Transaction Terms
Key Transaction Terms Key Investment Terms y China Netcom Group to subscribe for 1,343,571,766 new shares of PCCW at HK$5.90 per share – Representing 20% of the enlarged issued share capital immediately after the subscription y Subscription price of HK$5.90 per share represents – 25.5% premium to th
Slide 4: Key Transaction Terms (cont'd)
Key Transaction Terms (cont’d) y Pacific Century Group and related companies will hold 25.5% of PCCW’s shares after transaction y China Netcom Group will have a 20% equity stake in PCCW – China Netcom Group will nominate 3 new Directors to join PCCW’s Board: one of the three will also become a Deput
Slide 5: Beneficial to Both Parties
Beneficial to Both Parties Align interests of both parties to jointly create shareholder value Supplement Supplement China China Netcom Netcom Group’s Group’s capabilities capabilities in in China China Assist Assist China China Netcom Netcom Group Group in in meeting meeting its its international i
Slide 6: China Netcom Group - A Strong Chinese Partner
China Netcom Group - A Strong Chinese Partner y China Netcom Group holds nationwide fixed-line telecom license – Is the incumbent, ex-monopoly operator in Northern China, and a broadband leader Heilongjiang – Holds controlling interest in CNC HK and telecom interests in other provinces Nei Mongol Ji
Slide 7: PCCW – the Premier Service Provider in Hong Kong
PCCW – the Premier Service Provider in Hong Kong PCCW y Suite of innovative services, eg. now BB TV, Wireless Broadband, NGFL y Strong MNC customer base y Experience in operating in a highly competitive and de-regulated market y Strong selling and marketing skills y International presence y Our deve
Slide 8: Financial Impact on PCCW
Financial Impact on PCCW Amount & Use of Proceeds y Net proceeds approximately US$1 Bn (HK$7.9 Bn) y Up to HK$5 Bn allocated for suitable investment opportunities in China y Remaining balance for general corporate purposes Strengthens Financial Profile y Cash increased by approximately US$1 Bn y Net
Slide 9: Ownership and Corporate Governance
Ownership and Corporate Governance y Deepen shareholder base with a strong Chinese partner y PCCW becomes the only operating telco outside mainland China with a major Chinese telco as a 20% strategic equity investor Pro Forma Major Shareholders % Ownership PCG and related companies 25.5% China Netco
Slide 10: Summary
Summary y Accelerate PCCW’s China strategy – Support from one of the largest telecom companies in China – PCCW becomes the only operating telco outside mainland China with a Chinese telco as a 20% strategic equity investor y Enhance PCCW’s competitive position in China and Asia y Supplement China Ne
Slide 11: Forward Looking Statements
Forward Looking Statements The statements included in this presentation that are not historical in nature are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 as amended and Section 21E of the U.S. Securities Exchange Act of 1934 as amended. These for