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B.Telecom in $390M HK link
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April 7, 1999: 4:09 a.m. ET
British Telecom buys 20 percent stake in SmarTone to join U.S. partner
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LONDON (CNNfn) - British Telecommunications agreed to buy a 20 percent stake in Hong Kong cellular operator SmarTone for HK$3.02 billion ($390 million) Wednesday.
The deal teams BT with alliance partner AT&T (T), which already has a 16.5 percent stake in the acquisitive wireless group.
BT will buy new shares in SmarTone at HK$25 a share, an 11 percent premium over the company's April 1 closing price.
The deal will dilute the stake held by Sun Hung Kai Properties, from 32.9 percent to 26.3 percent, though it remains the largest shareholder, followed by British Telecom.
SmarTone has a 25 percent market share of the crowded Hong Kong cellular market, in which eight operators and 11 networks jostle for subscribers.
SmarTone has made extensive acquisitions in Hong Kong and has teamed up with equipment supplier Ericsson to develop a range of value-added services, including share trading.
The SmarTone deal is expected to be completed on or around May 7 and is the first involving BT and AT&T since their wide-ranging alliance agreement received regulatory approval last month. 
-- from staff and wire reports
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