HKT Trust and HKT (HKT), a unit of Hong Kong-based telecoms group PCCW, has raised HK$7.9bn (US$1bn) through a rights issue, according to a stock exchange announcement today.
Between 3 July and 15 July, HKT offered more than 1.1 billion rights…
HKT Trust and HKT (HKT), a unit of Hong Kong-based telecoms group PCCW, has raised HK$7.9bn (US$1bn) through a rights issue, according to a stock exchange announcement today.
Between 3 July and 15 July, HKT offered more than 1.1 billion rights share-stapled units at HK$6.84 each, representing a 17% discount to the 13 June closing price when the transaction was first announced.
The acceptance level from shareholders was 99.38%. PCCW, held by Hong Kong billionaire Richard Li, took up 63% of the offering.
The joint underwriters – Standard Chartered, HSBC, Goldman Sachs, Citi, Morgan Stanley and Deutsche Bank – subscribed to the remaining units.
Proceeds will be used to refinance debt incurred from HKT’s recent acquisition of Hong Kong mobile operator CSL for US$2.42bn.
Late last year, HKT said it would buy back rival CSL from Australia’s Telstra and conglomerate New World Development. The transaction allows it to become Hong Kong’s largest mobile operator with an estimated 31% market share.
PCCW spun off part of HKT in a US$1.2bn IPO in late November 2011. This was the first time that Hong Kong allowed the listing of a business trust, which combines elements of a company with those of a unit trust, and is operated through a trustee manager. Investors in such a trust hold units rather than shares.
HKT acts as the local and international business arm of PCCW, which operates in Hong Kong’s wireless market as PCCW Mobile.
