10:26 <03769>, <03771>, <03772> & <03773> - Announcement (2) existing issued ordinary 30 December HK$14.48 shares of HK$0.10 2005 each of COSCO Pacific Ltd. Each series of Warrants will be issued at the following issue prices: Warrants Issue Price per Warrant Hutchison Call Warrants HK$0.60 Swire Call Warrants HK$0.39 BOC Call Warrants HK$0.98 COSCO Call Warrants HK$0.25 Every board lot of Warrants will initially entitle the holder upon exercise thereof to receive from the Issuer a payment in cash (the "Cash Settlement Amount") calculated as follows: Cash Settlement Amount (Average Price - Exercise Price) x one Board Lot per Board Lot: = ------------------------------------------------ number of Warrants per Share (as defined in, and subject to adjustment as provided in, the Conditions) In respect of the Warrants, on the Expiry Date, if the Exercise Price is less than the Average Price, the Warrants will be automatically exercised. It is not necessary, therefore, for a holder of Warrants to submit an exercise notice in order to exercise its Warrants and the Issuer will pay to the holder of Warrants an amount calculated as described above (minus exercise expenses in accordance with the terms and conditions of the Warrants). The Issuer is not regulated by any of the bodies referred to in Rule 15A.13(2) or (3) of the Rules Governing the Listing of Securities on the Stock Exchange. The Warrants will constitute general unsecured contractual obligations of the Issuer and will be unconditionally and irrevocably guaranteed by the Guarantor which is a bank holding company registered under the Bank Holding Company Act of the United States of America. Prospective purchasers of the Warrants should note that if they purchase the Warrants, they are relying upon the creditworthiness of the Issuer and the Guarantor and have no rights under the Warrants against the company which has issued the underlying securities. Dealings in the Warrants are expected to commence on the Stock Exchange on or about 13 January 2005. The premium, gearing, effective gearing and implied volatility in respect of each series of Warrants are as follows: Effective Implied Warrants Premium Gearing Gearing Volatility Hutchison Call Warrants 5.09% 11.88x 6.91x 25.0600% Swire Call Warrants 9.64% 15.83x 7.37x 27.5400% BOC Call Warrants 8.26% 14.95x 7.12x 25.5900% COSCO Call Warrants 12.08% 6.06x 3.72x 39.5900% It should be noted that the above values should not be compared to similar information provided by other issuers of derivative warrants listed on the Stock Exchange because different issuers adopt different valuation models. Application will be made to the Listing Committee of the Stock Exchange for the listing of, and permission to deal in, the Warrants on the Stock Exchange and the issue of the Warrants is conditional upon listing being granted. As at the date of this announcement, the Guarantor's long term credit rating is Standard and Poor's, AA-, Fitch IBCA, A+, and Moody's Investors Services, Aa2. The Warrants will be issued subject to the terms and conditions of the Issuer's base listing document dated 10 June 2004 (the "Base Listing Document") as supplemented by the Supplemental Disclosure Document dated 23 September 2004 (the "Supplemental Disclosure Document") and the relevant supplemental listing document (the "Supplemental Listing Document") to be dated on or about 12 January 2005. Copies of the 2002 and 2003 Annual Reports of the Issuer, the 2002 and 2003 Annual Reports of the Guarantor, the relevant Supplemental Listing Document, the Supplemental Disclosure Document, the Base Listing Document and a Chinese translation of each document may be inspected, from the date of commencement of the dealing in the Warrants on the Stock Exchange up to and including the Expiry Date, during usual