Ltd and Hong Kong conglomerate Hutchison Whampoa Ltd said yesterday they had completed the formation of their US$1.2 billion, 50-50 joint venture.

The joint venture, Hutchison Global Crossing, pursues fixed-line telecommunications and Internet opportunities in Hong Kong, the two partners said in a joint statement.

The joint venture combines Hutchison Whampoa's existing fixed-line fibre optic telecommunications network and certain Internet-based assets in Hong Kong with Global Crossing's international fibre optic broadband cable capacity and growing inventory of web hosing, Internet applications and data services.

For its 50 percent share, Global Crossing paid Hutchison Whampoa US$400 million (HK$3.108 billion) in Global Crossing convertible preferred stock.

Additionally, Global Crossing has committed to contribute to the joint venture international telecommunications capacity rights on its global fibre optic network and global data centre related capabilities which are together valued at US$350 million (HK$2.720 billion). Global Crossing will also invest US$50 million (HK$389 million) in cash.

In total, Global Crossing's investment values the joint venture at US$1.2 billion (HK$9.3 billion).

Global Crossing intends to integrate its share of Hutchison Global Crossing with Asia Global Crossing, its joint venture with Microsoft Corp and Softbank Corp.

Hutchison Whampoa has agreed that the fixed line telecommunications activities it pursues in China will be carried out by the joint venture, the statement said.