AWE Finalizes Far EasTone Sale

AT&T Wireless finalizes $330M agreement for sale of ownership stake in Far EasTone to the carrier's majority shareholder, Far Eastern Group

October 9, 2003

1 Min Read

REDMOND, Wash. -- AT&T Wireless (NYSE:AWE) today announced it has signed an agreement to sell its ownership stake in Taiwanese wireless carrier Far EasTone Telecommunications Co., Ltd. to member companies of the carrier's majority shareholder, Far Eastern Group, for approximately US$330 million in cash.

The transaction is expected to occur in two stages. In the first stage, AT&T Wireless will respond to a tender offer for Far EasTone (FET) shares by member companies of the Far Eastern Group (FEG), and offer to sell about 76 percent of its stake in the company. The tender period began today in Taiwan and is expected to extend until October 20, with closing and funding expected October 21.

Sale of AT&T Wireless' remaining stake in FET will occur in a second transaction which, subject to regulatory approval, is expected to close in the fourth quarter of this year. Failure to receive regulatory approval would result in a gradual divestiture of FET shares at regular intervals through 2005.

"Our association with Far EasTone has been very positive, and we are pleased our customers will continue to benefit from our roaming relationship with the company," said Jordan Roderick, president of International at AT&T Wireless. "The sale of our interest in Far EasTone is part of our ongoing plan to monetize our non-North American assets."

AT&T Wireless was a founding partner of FET in 1996 when FET was awarded a nationwide 1800 MHz and a 900 MHz license for the northern region of Taiwan. FET currently has 4.3 million GSM subscribers, and is the third largest wireless operator in Taiwan.

AT&T Wireless Services Inc.

Far EasTone Telecommunications Co. Ltd.

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