China Mobile Hong Kong offers HK$3.38B to acquire China Resources Peoples Telephone Company

October 20, 2005

1 Min Read

HONG KONG -- China Mobile (Hong Kong) Limited (“CMHK”) announced today that it will make a voluntary conditional cash offer (the “Offer”) of HK$4.55 per share to acquire all of the issued and outstanding shares of China Resources Peoples Telephone Company Limited (“Peoples”), valuing the entire issued share capital of Peoples at approximately HK$3,384 million.

This announcement follows the execution of a non-binding memorandum of understanding (“MoU”) between CMHK and China Resources (Holdings) Company Limited (“China Resources”) and Mr. Michael Leung on 4 October 2005 in connection with a possible acquisition of their respective 48.31% and 17.94% stakes in Peoples for HK$4.55 per share in cash. CMHK has since received irrevocable undertakings from China Resources and Mr. Michael Leung to accept the Offer with respect to their entire shareholdings in Peoples, representing in aggregate 66.24% of Peoples’ outstanding share capital.

The offer price of HK$4.55 per share represents a premium of approximately 17% over the closing price of HK$3.90 prior to the announcement of the MoU, a premium of approximately 27% over the average closing price of HK$3.592 for the last 30 trading days up to the date of this release, and a premium of approximately 46% over the average closing price of HK$3.123 for the three months up to the date of this release.

Commenting on the Offer, Mr. Wang Jianzhou, Chairman and Chief Executive of CMHK, said:

“The Offer is a well-considered and strategic entry into a market that is culturally, economically, and geographically tied to Mainland China. The successful completion of this acquisition will expand CMHK’s footprint and enable CMHK to achieve synergies in areas such as procurement, marketing, and product development.”

China Mobile Ltd. (NYSE: CHL)

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