PCCW unveils restructuring plan

29 May 2008

The Financial Times (FT) writes that Hong Kong-based telecoms group PCCW plans to sell 45% of its core fixed line, broadband, mobile and pay-TV assets to investors following a proposed spin-off of the operations to a newly formed company, which is to be listed at a later date. The telco said the plan to regroup core businesses into HKT Group Holdings would improve operational efficiencies and lower its tax rate. PCCW is inviting proposals from investors to acquire up to 45% of HKT Group Holdings, to fund ‘investments in further growth initiatives in telecommunications, media and technology.’ According to PCCW, the corporate shake-up would not require shareholder approval because it is an internal reorganisation involving no change to the ultimate ownership of assets.