XN000022-1974-07-31 — Page 14

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WEDNESDAY, JULY 31, 1974

WIDER MARKET TO BE CREATED FOR CROSS HARBOUR TUNNEL SHARES

THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID TODAY THAT THE COVERNMENT, AS A SHAREHOLDER AND THE SECURITIES COMMISSION, VILL ENSURE THAT THERE IS NO UNDUE DELAY IN THE CREATION OF A WIDER HARKET FOR SHARES OF THE CROSS HARBOUR TUNNEL COMPANY WHEN CONDITIONS ARE FAVOURABLE.

SPEAKING IN REPLY TO A QUESTION FROM DR. THE HON. CHUNG SZE-YUEN, MR. HADDON-CAVE SAID THAT THERE WAS NO SAFEGUARD IN THE TERMS OF THE CROSS HARCOUR TUNNEL FRANCHISE TO ENSURE THAT THE MINIMUM 25 PER CENT SHARES DE OFFERED TO THE PUBLIC AT A FAIR MARKET PRICE.

HOWEVER, HE SAID THE COMPANY DID OFFER TO THE PUBLIC 25 PER CENT OF ITS ISSUED CAPITAL, OR A TOTAL OF 31,625,000 SHARES.

THE FINANCIAL SECRETARY POINTED OUT THAT THE MEANING OF +FAIR MARKET PRICE+ COULD VARY ACCORDING TO THE CIRCUMSTANCES OF THE MARKET.

HOWEVER, HE SAID THE PRICE AT WHICH THESE SHARES VERE OFFERED WAS, IN THE OPINION OF THE PROFESSIONAL ADVISERS TO THE COMPANY, PITCHED AT THE RIGHT LEVEL FOR THE ISSUE TO BE SUCCESSFUL IN THE MARKET CONDITIONS PREVAILING AT THE TIME THE PROSPECTUS WAS ISSUED.

SUBSEQUENTLY WHEN MARKET CONDITIONS CHANGED, THE VENDORS ARRANGED TO REPURCHASE +AT THE OFFER PRICE+ ANY SHARES HELD BY SUB-UNDERWRITERS AND MENCERS OF THE PUBLIC.

+ IT IS THE FIRM INTENTION OF THE ORIGINAL SHAREHOLDERS OF THE COMPANY TO PLACE MORE SHARES WITH THE PUBLIC AS AND WHEN MARKET CONDITIONS WARRANT THIS,+ KR. HADDON-CAVE SAID.

HE ALSO EXPLAINED THAT ONE SECTION OF THE CROSS HARBOUR TUNNEL ORDINANCE PROVIDES THAT ITS SHARES MUST BE LISTED AND QUOTED ON THE HONG KONG STOCK EXCHANGE WITHIN TWO YEARS OF THE OPENING DATE OF THE TUNNEL.

MR. HADDON-CAVE FURTHER NOTED THAT THE RULES OF THE HONG KONG STOCK EXCHANGE ALSO PROVIDE THAT NORMALLY A COMPANY'S SHARES SHALL NOT BE LISTED OR QUOTED ON THE EXCHANGE UNLESS 25 PER CENT OF ITS ISSUED CAPITAL HAS BEEN OFFERED TO THE PUBLIC.+

MOREOVER, THE SCHEDULE ATTACHED TO THE PRINCIPAL ORDINANCE STATED THAT THE PUBLIC SHOULD BE GIVEN AN OPPORTUNITY TO PARTICIPATE IN NOT LESS THAN 25 PER CENT OF THE ISSUED CAPITAL OF THE COMPANY.

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