PCCW aims to raise more than $1.3 billion from proposed listing of telecoms business
According to reports, PCCW is looking to raise more than $1.3 billion from the proposed listing of its telecoms business trust.
The company, which first announced plans to make its telecom unit into a publicly traded business trust in March 2011, will only push ahead with the move if its market capitalisation rises above approximately $3.6 billion. This represents almost 20% more than the company’s existing capitalisation of approximately $3.05 billion.
PCCW’s telecoms business unit accounted for almost 80% of its total revenue for the financial year ending December 2010. The company therefore believes the separation of the business unit should translate into a higher market value compared to other businesses.
In August, the company said it was planning to go ahead with its plans for the proposed spin-off in the fourth quarter of this year (click here) but still requires approval from Hong Kong regulators.