PCCW to request stock exchange approval for business trust floatation

2 Sep 2011

Hong Kong’s former monopoly long-distance fixed line operator PCCW has moved another step closer to listing its core telecom assets as a business trust, with plans to seek approval for its IPO from the Hong Kong stock exchange next week. Currently there is no legislation in place to cover such actions, but neither are they prohibited. It is expected that the regulators will implement suitable rules to cover business trusts shortly. The stock exchange had rejected PCCW’s trust plan in April, worried that it would strip a high quantity of core assets from the listed company, but conceded to allow the segmentation of its telecoms and mobile assets in June. The operator hopes to raise up to USD2 billion and is targeting a late October listing for the trust. Apart from seeking listing approval on 8 September, the PCCW business trust also needs shareholder approval, although the company has yet to set a date for the shareholder vote.

Hong Kong, HKT (incl. CSL), PCCW Group