Hong Kong-based telecom conglomerate PCCW has announced it may spin off and conduct a separate listing of its fixed-line phone business.
The company explained that the listing could take the form of a listed business trust and that potential issues are…
Hong Kong-based telecom conglomerate PCCW has announced it may spin off and conduct a separate listing of its fixed-line phone business.
The company explained that the listing could take the form of a listed business trust and that potential issues are being discussed with regulators in Hong Kong.
The Wall Street Journal wrote that Hong Kong currently only allows the listing of real-estate trusts, not of other business trusts.
A business trust 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.
Richard Li, media tycoon and chairman of PCCW, is reportedly looking to spin off the fixed-line business in order to focus on other operations. Reuters wrote that forming the business trust would allow him to raise money without giving up control of the fixed-line operations.
