Sunday shareholders reject privatisation plans

15 Dec 2005

Minority shareholders in Hong Kong’s Sunday Communications have voted to block parent company PCCW’s plan to take it private, preferring to leave the company as a separately listed firm. Of the independent Sunday shares voted at a special meeting, 82.8% were in favour of the privatisation and 17.2% were voted against. Under takeover rules, a vote of more than 10% of a company’s independent shares against privatisation is sufficient to block the deal. According to PCCW CFO Alex Arena, PCCW will now look to restore the public float of 25%, the minimum required under Hong Kong stock exchange rules. As it stands PCCW owns 79.35% of Sunday’s shares.

Hong Kong, PCCW Group, PCCW Mobile (formerly Sunday Communications)