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9.
Cable and Wireless (H.K.)
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Shareholding
9.1
9.2
9.3
9.4
9.5
In 1981, at the time of forming CWHK, it was agreed with Government that at a future date consideration would be given to part of the Company being made available to the public.
In early 1986, the then Financial Secretary, Sir John Bremridge made enquiry as to whether Cable and Wireless would be interested in acquiring back from Government their 20% shareholding in the Company. Sir John asked also that we advise him of a framework whereby Government could continue to exercise adequate supervision and control over the activities of the Company albeit that they were no longer a shareholder. The Company responded in June 1986 with suggestions as to how Government could continue to retain its supervisory role and indicated a firm interest in re-acquiring the shares. Nothing further was heard on this subject until the end of 1986 when the current Financial Secretary, Piers Jacobs wrote to us asking
a)
b)
c)
why we were interested in buying the shares;
what China's view would be about such a transaction;
why we were not willing to contemplate release of the shares to the public.
In the
the meantime, and having regard to the 1981 undertaking consider public ownership, Cable and Wireless plc had been listed in Hong Kong for the very purpose of enabling the Hong Kong public a wider participation in the worldwide activities of the Cable and Wireless Group.
We have responded to Piers Jacobs to the effect that our interest in acquiring the shares arose simply because they were offered to us; that we
cannot speak for the Chinese and that, in principle, we are still willing to contemplate some methodology for achieving public ownership in CWHK. The issue is now considerably complicated by the fact that Cable and Wireless plc is listed in Hong Kong and the Group thus have two quotations in the territory. A third quotation is not desirable but we are still willing to discuss with Government various alternatives which would achieve the mutually agreed objective of 1981.
It needs little imagination to recognise that if any party were granted the right to lay a competing domestic telecommunications network, they would next seek direct international access. This would have direct impact on the value of CWHK shares as well as the value of the already listed CW plc shares.