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HK stock exchange rejects PCCW spinoff
28 April 2011
The Hong Kong stock exchange has told PCCW that it cannot spin off its telecoms division into a business trust
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Cable & Wireless
The Hong Kong stock exchange has rejected PCCW’s proposed spinoff of its telecoms business. The Hong Kong operator was seeking to carve out its business in the form of a listed business trust.
The rejection was made under the exchange’s guidance note for companies looking to spin off and separately list one of their existing businesses. The operator is now planning to appeal against the decision by the exchange.
The company is controlled by Li Tzar Kai (Richard Li), the son of Hong Kong’s richest man, Li Ka-shing. According to reports PCCW may plan to list the telecoms unit as a business trust in Singapore, where such structures are allowed.
PCCW, which announced its plan to list its telecom assets last month, offers wireless, fixed-line and internet services as well as a broadband-delivered television service.
PCCW — formerly Pacific Century Cyberworks — bought the former Hong Kong Telecom from Cable & Wireless in 2000 for $38 billion. It has more than 2.5 million business and residential lines in service. GTB