THE HAGUE, The Netherlands-KPN Mobile has decided not to grant a shareholder loan of $239 million to Hutchison 3G U.K. Holding in which it holds a 15-percent stake. Earlier this week, Japan’s NTT DoCoMo agreed to loan Hutchison 3G U.K. $315 million in line with its 20-percent stake in the company.
Hutchison made financial calls to partners KPN Mobile and DoCoMo earlier this year for cash necessary to fund its third-generation rollout in the United Kingdom.
“KPN Mobile is under no legal obligation under its shareholders’ agreement with Hutchison Whampoa Ltd. to meet this request,” the Dutch operator said in a statement. “In September 2002, KPN Mobile announced that it will make no further investments in Hutchison 3G unless required to do so under its shareholders’ agreement with Hutchison Whampoa Ltd.”
KPN is working to reduce its high debt levels following its buying spree for 3G licenses and partner stakes.
In addition to its funding commitment, NTT DoCoMo also announced it concluded a bilateral agreement on 3G services with Hutchison 3G U.K. parent company Hutchison Whampoa earlier this week. Under the service agreement, NTT DoCoMo will provide technologies from its 3G FOMA service to the Hong Kong-based company for its 3G subsidiaries.
