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TELSTRA GROUP LIMITED M&A Activity 2005
65927_rns_2005-11-14_4e1b51c0-1fa8-4e7d-aa06-a7ba7b11a1bd.pdf
M&A Activity
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15 November 2005
The Manager
Company Announcements Office Australian Stock Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000
Office of the Company Secretary
Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA
Telephone 03 9634 6400 Facsimile 03 9632 3215
ELECTRONIC LODGEMENT
Dear Sir or Madam
Telstra signs Hong Kong Memorandum of Understanding (MOU)
Telstra has entered into a non-binding Memorandum of Understanding (MOU) with New World Development Company Limited and its listed subsidiary, New World Mobile Holdings Limited, concerning a proposed merger of their respective Hong Kong mobile companies, Hong Kong CSL Limited and New World PCS Limited.
The MOU envisages that if agreement is reached between Telstra, New World Development and New World Mobile Holdings, following completion of the transaction CSL and New World PCS will be merged on a debt free basis so that Telstra will own 76.4% of the equity in the combined business and New World Mobile Holdings will own the remaining 23.6%. Telstra will also receive HK\$244M (A\$42m) in cash.
Telstra, New World Development and New World Mobile Holdings have agreed to a period of exclusivity until 2 December 2005 with a view to reaching final agreement.
Yours sincerely
North brake
Douglas Gration Company Secretary
Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556