The sale is subject to certain U.S. regulatory filings and approvals. Mr. Walker’s remaining 14.9 million priceline.com shares are subject to pre-existing options, forward contracts and other private agreements with third parties.
Hutchison is a multi-national conglomerate with a market capitalization of $46 billion. Hutchison operates five core businesses in 34 countries, including telecommunications and e-commerce, property and hotels, retail and manufacturing, energy and infrastructure, and ports and related services. Hutchison already has joined with priceline.com in an alliance to bring priceline.com’s business concept to 2.6 billion consumers in Asia.
In February 2001, in a separate transaction, CKH and Hutchison jointly purchased approximately 23.8 million shares of priceline.com common stock from priceline.com and an additional 11.3 million shares of priceline.com common stock from Mr. Walker. As a result of February’s and today’s transactions, CKH and Hutchison each hold an approximately 15 percent equity interest in priceline.com (together approximately a combined 30 percent). Separately, Hutchison also owns approximately 65 percent of Hutchison-Priceline Limited (HPL), the companies’ Asia venture.
We welcome the increased commitment by Cheung Kong and Hutchison to priceline.com, said priceline.com Chairman Richard S. Braddock. Priceline.com becomes an even stronger company through this transaction, because it enables us to broaden our relationship with strategic partners who have existing strengths in industries and technologies important to priceline.com’s future growth. Priceline, Cheung Kong and Hutchison share a vision and commitment to the success of priceline.com’s business model on a global scale.
Canning Fok, Group Managing Director of Hutchison and Director of CKH said, The more we have come to know priceline.com through our seat on their board and our venture in Asia, the more confident we are about the Company, its business model, its brand and its long term growth prospects. Priceline.com reported very encouraging results for the first quarter of 2001 and we are pleased to increase our commitment to priceline.com.
In connection with this stock acquisition, CKH and Hutchison will receive a total of two additional seats on priceline.com’s Board of Directors. Hutchison already has one seat on the board, which is occupied by Ian F. Wade, Group Managing Director of Hutchison’s A.S. Watson Group.
