this should bode well for pcclf's future air and ground assault for broadband access...a little nepotism can come in handy<gg>.
HONG KONG--Global Crossing (Nasdaq:GBLX):
-- 50/50 joint venture combines Hutchison Whampoa's existing fiber
optic telecommunications network and certain Internet-related
assets in Hong Kong with Global Crossing's international cable
capacity and growing inventory of web hosting, Internet
applications and data services.
-- Hutchison gains technological expertise and global connectivity.
-- Global Crossing gains entry into attractive markets in Hong Kong
and, when regulations permit the Greater China region.
-- Partnership expands Hutchison_s existing network, the largest
fully fiber-optic network in Hong Kong, as the cornerstone of the
planned China Crossing.
Hutchison Whampoa Limited and Global Crossing Ltd. announced todaythat they have completed formation of Hutchison Global Crossing, a50/50 joint venture to pursue fixed-line telecommunications and Internet opportunities in the Hong Kong Special Administrative Region, China.
The 50/50 joint venture combines Hutchison Whampoa's existing territory-wide, building-to-building fixed-line fiber optic telecommunications network and certain Internet-related assets in Hong Kong with Global Crossing's international fiber optic broadband cable capacity and growing inventory of web hosting, Internet applications and data services. For its 50% share, GlobalCrossing has provided to Hutchison Whampoa US$400 million (HK$3,108 million) in Global Crossing convertible preferred stock.Additionally, Global Crossing has committed to contribute to the joint venture international telecommunications capacity rights on its global fiber optic network and global data center related capabilities which together are valued at US$350 million (HK$2,720million), as well as US$50 million (HK$389 million) in cash. In aggregate, Global Crossing_s investment values the joint venture enterprise at US$1.2 billion (HK$9.3 billion).
Global Crossing intends to integrate its share of Hutchison GlobalCrossing with Asia Global Crossing, its joint venture with Microsoft and Softbank. Hutchison Whampoa has agreed that the fixed-line telecommunications activities it pursues in China will be carried out by the joint venture.
The transaction, which was approved by the Boards of Directors of Hutchison Whampoa and Global Crossing Ltd. in November, was completed after meeting necessary regulatory and other approvals and customary closing conditions.
About Hutchison Whampoa Limited
Hutchison Whampoa is a Hong Kong-based conglomerate with origins dating back to the 1800s. With a market capitalization of US$53 billion, Hutchison is one of the largest companies in Hong Kong. In 1998, consolidated turnover was over US$6.6 billion, and after-tax earnings were approximately US$1.1 billion. With 80,000 employees worldwide, Hutchison operates five core businesses in 25countries: ports and related services; telecommunications; property development and holdings; retail, manufacturing and otherservices; and energy and infrastructure. Hutchison_s telecommunications businesses and holdings span several continents, and include such diverse products as cellular telephone network services, fixed-line services, paging, trunked mobile radio services, VSAT and radio broadcasting. For more information, please visit www.hutchison-whampoa.com.hk.
About Asia Global Crossing
Asia Global Crossing is a joint venture among Global Crossing (Nasdaq:GBLX), SOFTBANK CORP. (Tokyo Stock Exchange: 9984), and Microsoft Corporation (Nasdaq:MSFT) created to provide the Asia Pacific region unprecedented access to a broadband, seamless global network through a combination of high-capacity city rings, terrestrial systems, and undersea cables. Asia Global Crossing offers businesses and consumers an array of advanced network-basedtelecommunications services including state-of-the-art telehouses,web hosting, and electronic commerce, as well as low-cost, high-quality telephony in competition with local incumbent carriers. Asia Global Crossing assets will include Global Crossing's 58% interest in Pacific Crossing-1, a subsea system connecting the US and Japan, and East Asia Crossing, a 17,000-km fiber optic subsea system that will link Japan, Taiwan, Korea, Hong Kong, Singapore, Malaysia, the Philippines, and China.
About Global Crossing
Global Crossing Ltd. (Nasdaq:GBLX) is building, and offering services over, the world's first global fiber optic network with 97,200 announced route miles, serving five continents, 24 countries and more than 200 major cities. The Global Crossing Network and its telecommunications and Internet product offerings will be available to over 80% of the world's international communications traffic. Global Crossing hosts more than 300 of thetop Internet brands at its web hosting division, GlobalCenter. Among the brands are some of the largest and most densely trafficked sites on the Web, including Yahoo!, The Motley Fool, Ziff Davis, MP3.com and eToys. Global Crossing_s operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Morristown, New Jersey; and Rochester, New York.
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions forthe future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in thenature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to timein the Company's filings with the Securities and Exchange Commission. |
