As previously advised, over 20% of the shares in all the companies within the K.S. Li Group are owned by institutions in the United Kingdom, through Bank Nominees. The principal ownership of Cheung Kong, in addition to this United Kingdom institutional holding, is held by Mr. Li
Li Ka Shing and his nationality would clearly be the principal factor in determining the position of Cheung Kong under the Scheme.
With regard to the management of four companies, I would have thought this would be determined, to a great extent, by the
by the nationality
nationality of those sitting on the Board of Directors. The details for HWL, HKE, Cheung Kong and Cavendish are enclosed in Schedule Two.
Our principal joint-venture with a United Kingdom company relates to the highly visible
the highly visible satellite operations of Asia Sat in which HWL and Cable & Wireless Ple jointly hold a stake of 66.6% (i.e. each holds a stake of 33.3%). We also have а joint-venture with British Telecom Plc for cable television in Hong Kong. This company is currently awaiting new directions from the Hong Kong Government based upon which the company will
will make decisions as to how it will go forward. HWL'S stake ia this company is 50%. British Telecom Pic own 24% of the shares in this joint-venture company, and have 20 arrangement whereby this shareholding can be increased to 49% dependent on
the outcome of various issues.
From the foregoing, whilst the position of HWL, HKE and Cavendish in relation to "British Connections" is very clear under the criteria which you may be looking at, the position of Cheung Kong is not so obvious. I regard Cheung Kong, however, as the centre-piece of the K.S.
the
Li Group, the other major constituents of which appear to be British Undertakings. Cheung Kong is intimately involved in the workings of these other three companies, and effectively the controlling party (see Schedule One). In particular, I believe that Cheung Kong's massive shareholding in HWL should be the guiding note with regard to its British Connections, and
and I hope very much that you will give this fair consideration.
For your information, I also enclose 2. list of the subsidiaries of HWL, in order to let you know full range of companies within its control, (see
the Schedule
Three).
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