Hang Lung Group Limited — M&A Activity 2000

Feb 14, 2000

Listed Company Information

PAC CENT CYBER<1186> - Announcement The Stock Exchange of Hong Kong Limited (the `Stock Exchange') takes no 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. PACIFIC CENTURY CYBERWORKS LIMITED (Incorporated in Hong Kong with limited liability) ANNOUNCEMENT The directors of Pacific Century CyberWorks Limited (`PCCW') announce that an approach was made during the afternoon of Friday, 11 February 2000, to Cable & Wireless plc (`C&W') for a merger between PCCW and Cable & Wireless HKT Limited (`Cable & Wireless HKT'), in which the shareholders of Cable & Wireless HKT will receive cash and shares in PCCW (the `Proposed Transaction'). The directors of PCCW announce that an approach was made during the afternoon of Friday, 11 February 2000, to C&W in relation to the Proposed Transaction. There can, however, be no assurance that terms can be agreed or, if such terms are so agreed, that PCCW will proceed with the Proposed Transaction. An offer has not yet been made to the board of directors of Cable & Wireless HKT although the non-executive directors of Cable & Wireless HKT have been informed of the approach, and PCCW's financial advisers approached Cable & Wireless HKT's financial advisers on Saturday, 12 February 2000. The directors of PCCW believe that a combination of Cable & Wireless HKT's prime quality broadband network together with PCCW's broadband internet content proposition would create an undisputed Asian internet powerhouse, and eventually a truly global leader with roots in Hong Kong. The directors of PCCW see the potential for substantial value creation from revenue synergies and the re-positioning of Cable & Wireless HKT as a true broadband access leader. The directors of PCCW wish to confirm that Warburg Dillon Read, the investment banking division of UBS AG, and BOC International Holdings Limited, the investment banking arm of the Bank of China, have been engaged on Thursday, 10 February 2000, as the financial advisers to PCCW in connection with the Proposed Transaction. In response to various reports which have appeared in the press, the directors of PCCW wish to confirm that they are not in discussion with Cheung Kong (Holdings) Limited or Hutchison Whampoa Limited with regard to the Proposed Transaction. In addition, no consortium has been formed at present. A further announcement will be made as and when appropriate to inform investors of the progress of the Proposed Transaction. Investors are advised to exercise caution when dealing in the securities of PCCW. The shares of PCCW were suspended from trading on the Stock Exchange at PCCW's request at 2.30 p.m. on Friday, 11 February 2000 pending the release of this announcement. Application has been made for trading in the shares of PCCW on the Stock Exchange to resume at 10.00 a.m. on Monday, 14 February 2000. By order of the Board Helen Chu Company Secretary Hong Kong, 12 February 2000 The Directors of PCCW jointly and severally accept full responsibility for the accuracy of information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in the announcement, the omission of which would make any statement in this announcement misleading.