Smartone Telecommunications' largest shareholder, Sun Hung Kai Properties (SHKP), will buy out a 20.76 per cent stake from BT, the property giant announced late last night. SHKP said it would raise its general offer price to HK$8.50, or a 3 per cent premium to its last offer and yesterday's closing price of HK$8.25. BT (International) said it had undertaken to tender its 121.28 million shares in Smartone, which would raise HK$1.03 billion. BT paid HK$3 billion for a 20 per cent stake in Smartone in April 1999, at HK$25 per share. With BT's exit, SHKP will be able to consolidate Smartone into a subsidiary, after increasing its stake to more than 50 per cent from the present 30 per cent. 'BT's exit of Smartone will be beneficial to both Smartone and SHKP,' SHKP said in a statement. 'SHKP continues to believe in the future prospects of Smartone and intends to hold Smartone's shares as long-term investments. The solid balance sheet of Smartone will further strengthen SHKP's financial position upon Smartone becoming a subsidiary.' SHKP said it intends to maintain the public listing of Smartone. The revised offer would extent for another two weeks. Smartone financial adviser ING said the SHKP offer was below book value but above the net cash value per share of HK$6.14.