China Telecom Group to spin off unit in USD400 million IPO

27 Feb 2006

According to a report in Hong Kong business daily The Standard, China Telecommunications Group, the parent of China Telecom Corp, is planning to spin off its engineering and telecom services arm in the second half of this year, in an IPO which could raise between USD200 million and USD400 million. The move will be the group’s second spin off for a Hong Kong listing after its operating unit, China Telecom Corp – the PRC’s largest fixed line operator – in 2002. China Telecom Group, which provides fixed line services in 21 provinces in southern China, may bundle part of its engineering and telecom services business into the proposed listed unit. The group has picked China International Capital Corp and Goldman Sachs as joint sponsors of the offering.

China, China Telecom Group