CK Hutchison Holdings Limited - Media Center > Press Releases
Press Releases
Related Topics
Press Releases


For immediate release

Investor, Ericsson and Hutchison Whampoa
complete acquisition of Guoco Land

Business expands with investment activities
in the mobile Internet industry

Hong Kong 31 May, 2000 - Investor, Ericsson and Hutchison Whampoa today announced the completion of their acquisition of a controlling interest in Guoco Land Limited (the Company), a company listed on the Stock Exchange of Hong Kong.

The Company, which will be renamed imGO pending regulatory approval, is expanding its business to focus on the mobile Internet industry in Asia and develop a significant presence in the wireless Internet industry. The Company will invest in telecommunication-related technologies, wireless Internet enabling technologies, software applications, hardware (devices and terminals), wireless content providers and broadband infrastructure.

The three shareholders have contributed a total of US$177 million to the Company. Investor is the lead shareholder with 33.7 percent of the enlarged share capital. Ericsson holds 16.4 percent and Hutchison, 9.9 percent. The existing shareholders Guoco Group, a member of the Hong Leong Group Malaysia, holds 24.2 percent of the enlarged share capital. A substantial portion of Investor's stake in the Company is earmarked for the Investor Capital Partners - Asia Fund, L.P.

Mr. Claes Dahlbck, Executive Vice Chairman of Investor AB has been appointed Chairman of the Company, and Ms. Winnie Fok has been appointed interim CEO. Ms. Fok is the Managing Director of Investor Asia Limited. The other directors of the Company include Mr. Brje Ekholm, Mr. Galeazzo Scarampi, and Mr. Kjell Srme. Mr. Ekholm is the Global Head of the New Investments arm at Investor AB. Mr. Scarampi is the CEO of Investor Asia Limited. Mr. Srme is the Head of Asia Pacific and an Executive Vice President of Ericsson.

"Leveraging shareholder expertise, we are very much looking forward to nurturing the development of the innovative and exciting wireless Internet industry," said, Mr. Claes Dahlbck, Chairman of the Company. "We see enormous growth potential, potential that our partnership will harness thanks to the unique breadth of experience that Investor, Ericsson and Hutchison Whampoa bring to this Company."

"This initiative is in line with Ericsson's strategic focus on driving and creating the mobile Internet market. Asia plays a very important role in this growing industry as one of the frontrunners when it comes to new services and applications for the mobile Internet", said Mr. Kjell Srme, Ericsson.

"The Internet has broken through so many geographical barriers. What is interesting about this partnership is that it brings together a leading holding company in Sweden, Investor, the world leader in mobile communications, Ericsson, and Hutchison, Hong Kong's largest multinational conglomerate with a wealth of knowledge in Asia and extensive experience in operating Internet and wirefree networks and services to contribute to the fast expanding communications industry," Group Managing Director of Hutchison Whampoa Limited Mr. Canning Fok said.

Mr. Kwek Leng Hai, President and CEO of Guoco Group Limited, the Company's existing shareholders commented, "Over the past several years, Guoco Group's financial service companies, particularly Dao Heng Bank Group, have clearly identified the major role that wireless applications will play in banking, stockbroking and other financial services throughout Asia. All indications point to explosive growth which will facilitate the modernization within the communications and financial services sectors and the economy as a whole. As such, we welcome this important initiative by Investor, Ericsson and Hutchison for Asia and Greater China in particular."

Investor AB

Investor AB, Sweden's largest holding company with total net asset value close to US$20 billion, is a leading shareholder in a number of global companies, including ABB, AstraZeneca, Ericsson, Electrolux, OM Gruppen, Saab, Scania, SEB and StoraEnso. In addition, through its New Investments arm, Investor has made a number of promising investments in early stage and growth companies in the United States, Asia and throughout Europe. Investor is focused on identifying emerging leaders in high growth sectors such as technology and health care.

Investor Capital Partners - Asia Fund, L.P. is the investment vehicle of Investor AB in Asia and focuses on buy-outs and providing growth capital.

Ericsson

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.
Read more at www.ericsson.com/pressroom

Hutchison Whampoa

Hutchison Whampoa is a Hong Kong-based multinational conglomerate. In 1999, the company's consolidated turnover was over US$7.1 billion, and earnings after tax and exceptional items were approximately US$15.1 billion. With over 80,000 employees worldwide, Hutchison operates five core businesses in 24 countries: ports and related services; telecommunications and e-commerce; property and hotel; retail and manufacturing; and energy, infrastructure and investments.

Worldwide, the Group is one of the leading owners and operators of Internet and telecommunications facilities and services. These include mobile telephony (voice and data), fixed-line services, ISP and ICP services, Web hosting services, fiber optics broadband networks, paging, trunked mobile radio, VSAT and radio broadcasting services. Website: www.hutchison-whampoa.com.

Press Contacts

Asia

Investor Asia LimitedEricsson
Mr. Bobby ChangMr. James Luo
Tel: +852-2801-6823Tel: +852-2590-5905
Fax: +852-2810-4909Mobile: +852-9862-0087
E-mail: asia@investor.seFax: +852-2590-5950
E-mail: james.luo@eap.ericsson.se

Hutchison WhampoaGavin Anderson & Company
Ms. Laura CheungMs Aubrey Ho
Tel: +852-2128-1235Tel: +852-2523-7189
Pager: +852-7318 4778Mobile: +852-9418-9209
Fax: +852-2128-1766Fax: +852-2810-1239
E-mail: laurac@hwl.com.hkE-mail: aho@gavinanderson.com.hk

Europe

InvestorEricsson
Mr. Nils Ingvar LundinMs. Pia Gideon
Tel: +46-8-614-2049Tel: +46-8-719-2864
Mobile: +46-70-514-2049Mobile: +46-70-519-2864
Fax: +46-8-614-2844Fax: +46-8-719-6643
E-mail: ludde@investor.seE-mail: pia.gideon@lme.ericsson.se