CTI's Subsidiary Hong Kong Broadband Network Ltd. Issued 15% of
Shares To the Largest Japanese International Telecom Carrier KDD Corporation
HONG KONG, March 1 /PRNewswire/ -- City Telecom (H.K.) Ltd. (Nasdaq: CTEL - news) today announced that its subsidiary, Hong Kong Broadband
Network Ltd. (HKBN), will issue 15% of its shares to KDD Corporation (KDD), the largest international telecom carrier in Japan. CTI has already obtained
approval from OFTA on the captioned deal.
KDD, a leading telecommunications company in Japan, provides a comprehensive range of voice, data and video products and services to both business customers
and consumers with more than 45 years of operation. The KDD Group consists of 71 companies covering a wide variety of telecommunication related businesses
such as engineering, facility hosting and submarine cable construction. It has 74 offices in Japan and 35 abroad providing customers with global support. Operating
revenue and operating income of fiscal year ended March 1999 of the Group were US$3.6 billion and US$54 million respectively.
KDD will subscribe 15% of the issued and enlarged issued share capital of HKBN, for a total subscription price of HK$225 million.
``We are delighted to have KDD as our new strategic partner to further strengthen our position in the Hong Kong's broadband market. This strategic move brings
together the key strengths from our two organisations where KDD possesses the wireless technology know-how and CTI has comprehensive knowledge on the local
telecom market. I am confident that the combined strengths will enable HKBN to secure a market-leading position in the market,' said Mr. Ricky Wong, chairman of
CTI and HKBN.
``CTI's leading position in both the IDD and Internet market are reasons for our confidence in investing in HKBN. This investment marks a significant milestone on
our expansion to Hong Kong telecom market,' said Mr. Takeo Miura, Senior Deputy Director of KDD.
``The expertise of KDD on wireless technology will make possible the aggressive network rollout of Hong Kong Broadband for a wireless broadband network in
Hong Kong. KDD's involvement will also ensure the highest quality and technical standards,' added Mr. Wong.
Leveraging on the expertise of KDD on wireless fixed line technology, Hong Kong Broadband and KDD will co-operate to seek opportunities to support the growth
and development of Hong Kong Broadband by providing services and products including network access.
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