Sunday’s shareholders approve plan to delist, sell assets to PCCW

1 Dec 2006

Minority shareholders of Hong Kong’s smallest cellco Sunday Communications yesterday voted to approve the HKD1.94 billion (USD250 million) sale of its core network assets and operations to its 79%-owner PCCW. Sunday said that 99.5% of shareholders voted for the sale and also approved a proposal to delist the company from the stock exchange. PCCW offered Sunday HKD401.5 million in cash and a promissory note on the remaining HKD1.54 billion; Sunday reportedly owes its parent HKD1.4 billion.

According to TeleGeography’s GlobalComms database, in December 2005 PCCW, Hong Kong’s fixed line and broadband market leader, fell short in its attempt to buy 100% of Sunday’s shares. This led it to switch strategy, as the purchase of all the cellco’s infrastructure and related assets only required approval from a majority of independent shareholders, rather than the 90% required for a complete takeover. Sunday’s other backers include Huawei Technologies, which holds around 10% of its equity.