PCCW targets Q4 for business restructure
Hong Kong-based telco PCCW is aiming to go ahead with its plans for a proposed spin-off and listing of its telecoms business in the fourth quarter of this year.
PCCW hopes to create a separate listing for its telecoms business in the form of a listed business trust, but still requires approval from Hong Kong regulators.
Reuters reported that PCCW's group managing director Alexander Arena said the company was on “track in preparing the relevant documentation".
"We are still targeting the fourth quarter. That remains our aim," he added.
The company first announced the plan in March 2011, only to have to make a modification to its proposal in order for it to be approved by the Hong Kong Stock Exchange Listing Committee. It has since been working with Hong Kong regulators to finalise a structure that would enable the business trust to operate within the country’s existing regulatory framework.
One structure under discussion with regulators involves the listing of stapled securities with each stapled security comprising a unit in a trust and a share in the holding company of the telecoms business.
If the move does go ahead, the company hopes it will enable its telecoms business greater focus and financial status.