Australia's Davnet to Buy HK's New World Telephone

SINGAPORE (01/31/2000) - Australian telecommunications company Davnet Pty. Ltd. has entered into an exclusive agreement to acquire New World Telephone Ltd.

(NWT) of Hong Kong, Davnet said in a statement late last week.

NWT is one of Hong Kong's four existing licensed full telecommunication carriers and possesses one of the four exclusive fixed telecommunications network system (FTNS) licenses in the territory.

The agreement will allow Davnet to negotiate exclusively to purchase the business, full-carrier FTNS license and other assets of NWT in Hong Kong and China, Davnet said.

The purchase of NWT will provide Davnet with HK$1 billion (US$128.5 million) in revenue from 500,000 customers; an existing 310M-bit per second telecommunications link between Hong Kong, Japan and the United States and additional links to many other countries including Australia; a full carrier license in Hong Kong and telecommunications links to China to support Davnet's expansion into China, Davnet said.

No specific financial details of the acquisition were released although Davnet said it did not pay significantly more than NWT's book value.

Davnet, in Melbourne, Australia, can be found on the Web at http://www.davnet.com.au/.

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