HONG KONG: PCCW Ltd said on Wednesday, April 27'' that the Hong Kong stock exchange's listing committee has rejected the group's plan to spin off its telecommunications business in the form of a listed business trust.
In a filing to the Hong Kong bourse, PCCW said it would appeal the committee's decision.
"The Company disagrees with the Listing Committee's decision and believes that the reasons given for that decision are not justified," it said, without giving details.
PCCW, chaired by media tycoon Richard Li, said in March that it was in discussions with the Hong Kong bourse and the Securities and Futures Commission over the possible listing of its telecommunications business in the form of a business trust, preferably in Hong Kong.
Such a move would require a change to listing rules, which do not currently allow publicly traded business trusts.
The group, which aims to retain a controlling stake in the business on a long-term basis, said the proceeds from the spin-off and listing would be used to strengthen its balance sheet and for investment in future growth.
Shares of PCCW have fallen 6.7 percent so far this year, compared with the benchmark Hang Seng Index's 4.2 percent gain. - Reuters
In a filing to the Hong Kong bourse, PCCW said it would appeal the committee's decision.
"The Company disagrees with the Listing Committee's decision and believes that the reasons given for that decision are not justified," it said, without giving details.
PCCW, chaired by media tycoon Richard Li, said in March that it was in discussions with the Hong Kong bourse and the Securities and Futures Commission over the possible listing of its telecommunications business in the form of a business trust, preferably in Hong Kong.
Such a move would require a change to listing rules, which do not currently allow publicly traded business trusts.
The group, which aims to retain a controlling stake in the business on a long-term basis, said the proceeds from the spin-off and listing would be used to strengthen its balance sheet and for investment in future growth.
Shares of PCCW have fallen 6.7 percent so far this year, compared with the benchmark Hang Seng Index's 4.2 percent gain. - Reuters
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