XN000022-1991-12-11 — Page 25

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WEDNESDAY, DECEMBER 11, 1991

THESE INCLUDED A "NET ASSET" VALUATION OF CHTC AND A "NET PRESENT VALUE" VALUATION OF EXPECTED FUTURE DIVIDENDS (HAVING REGARD TO THE FRANCHISE PERIOD OF CHTC'S TUNNEL), THE ABSENCE OF A MORE COMPETITIVE OFFER FROM AN INTERESTED PARTY IN HONG KONG, AND THE CONDITIONAL REQUIREMENTS OF OTHER BIDDERS OF THE SHARES FOR TRANSPORT BRANCH ASSURANCES ON VARIOUS RELEVANT ASPECTS OF TRANSPORT POLICY WHICH THE EXCHANGE FUND WAS NOT IN A POSITION TO PROVIDE.

THE DISCOUNT OF 15.2 PER CENT TO THE MARKET PRICE OF $14.20 AT THE TIME OF THE SALE WAS CONSIDERED BY THE FUND'S FINANCIAL ADVISERS HAMBRO PACIFIC LIMITED TO BE ACCEPTABLE FOR A LARGE PRIVATE PLACEMENT AND FOR A SALE OF THIS TYPE, HE SAID.

THE OFFER WAS RECOMMENDED BY THEM TO THE EXCHANGE FUND AND THE DECISION TO SELL WAS TAKEN ON THE BASIS OF THAT RECOMMENDATION, THE SECRETARY SAID.

MR NENDICK SAID THE EXCHANGE FUND ACQUIRED THE CHTC SHARES FROM THE DEVELOPMENT LOAN FUND IN SEPTEMBER 1983 AND THE PURCHASE PRICE ON THE OF APPROXIMATELY $318 MILLION (OR $10.34 PER SHARE) WAS BASED VALUATION PREPARED BY INDEPENDENT PROFESSIONAL ACCOUNTANTS.

SINCE THAT TIME, THE FOLLOWING DIVIDENDS HAVE BEEN RECEIVED:

PER SHARE

1983 (SIX MONTHS)

1984

1985

1986

1987

1988

1989

1990

1991 (SIX MONTHS)

$0.580

$1.140

$1.140

$1.250

$1.310

$1.435

$1.465

$1.465

$0.670

THE SECRETARY SAID THE SALE TO THE WHARF GROUP REALISED TOTAL PROCEEDS OF $370 MILLION, RESULTING IN A CAPITAL GAIN OF $52 MILLION.

THE

THE OVERALL RETURN OF BOTH DIVIDENDS AND CAPITAL VALUE ΤΟ EXCHANGE FUND SINCE THE ACQUISITION OF THE SHARES IN 1983 REPRESENTED AN INTERNAL RATE OF RETURN OF 14.39 PER CENT PER ANNUM, HE ADDED.

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