HKT Trust and HKT, a unit of Hong Kong-based telecoms group PCCW, is hoping to raise HK$7.9bn (US$1bn) through a rights issue.
The subsidiary is planning to offer over 1.1 billion rights share-stapled units at HK$6.84 each, according to a statement…
HKT Trust and HKT, a unit of Hong Kong-based telecoms group PCCW, is hoping to raise HK$7.9bn (US$1bn) through a rights issue.
The subsidiary is planning to offer over 1.1 billion rights share-stapled units at HK$6.84 each, according to a statement today. Shares in HKT were trading at HK$8.25 as TelecomFinance went to press.
Proceeds will be used to refinance debt incurred from HKT’s recent acquisition of Hong Kong mobile operator CSL for US$2.42bn.
HKT will issue 18 shares for every 100 existing shares held by qualifying investors between 3 July and 10 July. PCCW said it will subscribe to the rights issue to up to 63%.
Global coordinators and underwriters on the offering are Standard Chartered, HSBC, Goldman Sachs and Citi. Morgan Stanley and Deutsche Bank joined as underwriters.
PCCW spun off part of HKT Trust and 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.
Late last year, HKT said it would buy back Australian operator Telstra’s 76.4% stake in CSL for US$1.85bn and the remaining 23.6% held by New World Development, a local conglomerate, for US$572m.
PCCW, held by Hong Kong billionaire Richard Li, recently secured regulatory approval for the CSL deal, which will allow it to become the city’s largest mobile operator with an estimated 31% market share.
