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responsibility for the contents of this announcement,
makes no representation as to its accuracy or completeness
and expressly disclaims any liability whatsoever for any
loss howsoever arising from or in reliance upon the whole
or any part of the contents of this announcement.
CHEUNG KONG (HOLDINGS) LIMITED HUTCHISON WHAMPOA
LIMITED
(Incorporated in Hong Kong with limited liability)
(Incorporated in Hong Kong with limited liability)
(Stock Code: 001) (Stock Code: 013)
JOINT ANNOUNCEMENT
CONNECTED TRANSACTIONS
The respective Boards of CKH and HWL wish to announce that
Project Co, a company in which each of CKH and HWL has
an indirect interest of 47.5% through Forton, won the land
bid of CQN Land. The remaining 5% interest in Project Co
is held by Independent Party.
On 18 April 2007, Project Co entered into the Land Use
Right Grant Contract for the acquisition and development
of CQN Land. It is intended that CQN Land will be developed
by Project Co into residential and commercial properties.
Pursuant to the Land Use Right Grant Contract, Project
Co agreed to pay a total consideration of approximately
RMB2,453 million (approximately HK$2,478 million) to
acquire the land use rights of CQN Land. The consideration
will be payable by instalments and subject to the other
terms and conditions set out therein.
To fund the payment of land costs, construction costs and
the development costs (including the cost of demolition
of the existing structures and compensation for the
settlement of the original occupiers) in relation to CQN
Land, the total investment and registered capital of
Project Co are proposed to be increased from RMB690 million
(approximately HK$697 million) and RMB230 million
(approximately HK$232 million) respectively to RMB4,542
million (approximately HK$4,587 million) and RMB2,156
million (approximately HK$2,178 million) respectively in
stages. The contribution to the registered capital of,
and any shareholders' loans to, Project Co is expected
to be made by CKH and HWL (or their respective subsidiaries)
in proportion to their respective effective equity
interests in Project Co.
HWL is a substantial shareholder of certain subsidiaries
of CKH and hence is a connected person of CKH within the
meaning of the Listing Rules. CKH is a substantial
shareholder of HWL and hence is a connected person of HWL
within the meaning of the Listing Rules. Accordingly, the
financial assistance provided or to be provided by way
of contribution to increase the registered capital of,
and any shareholders' loans, to Project Co in relation
to the Acquisition and Development constitute connected
transactions for both CKH and HWL under Listing Rule
14A.13(2). As one or more of the relevant percentage ratios
represented by the funding contribution of each of CKH
and HWL is or are more than 0.1% but less than 2.5%, in
accordance with Listing Rule 14A.66(2), such funding
contribution is exempt from the independent shareholders'
approval requirements and is only subject to the reporting
and announcement requirements set out in Listing Rules
14A.45 to 14A.47.
Funding contribution to Forton for the Acquisition and
Development through Project Co
Land Use Right Grant Contract
Parties: (1) Chongqing Land Bureau
(2) Project Co
Subject matter: Acquisition of land use rights of CQN
Land subject to and on the terms and conditions set out
therein.
The respective Boards of CKH and HWL wish to announce that
Project Co, a company in which each of CKH and HWL has
an indirect interest of 47.5% through Forton, won the land
bid of CQN Land. The remaining 5% interest in Project Co
is held by Independent Party.
On 18 April 2007, Project Co entered into the Land Use
Right Grant Contract for the purpose of acquiring and
developing CQN Land. It is intended that CQN Land will
be developed by Project Co into residential and commercial
properties.
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