Cable & Wireless in no rush to divest PCCW's shares
- by Michelle Chong
[ASW Singapore, 23 Feb 01] Britain’s Cable and Wireless (C&W) is in no hurry to divest its 15% stake in Pacific Century Cyeberworks Ltd (PCCW), which is a subsidiary of Pacific Century Regional Developments Ltd (PCRD). According to Quamnet, PCCW said both the companies hope that C&W’s divestment of PCCW shares will be made in an orderly manner. However, no timetable for the divestment has been set. Market observers believe C&W will most likely offload its PCCW shares when the share price is firmer. The possibility of a placement has also not been ruled out entirely.
In a separate development, PCCW announced that it had acquired Hutchison Telecommunications Technolgoy Investments group (including Hutchison Corporate Access), the satellite-based network solutions provider, from Hutchison Whampoa Ltd for a total consideration of HK$803 million. As purchase consideration, PCCW will issue new shares to Hutchison Whampoa at HK$4.375 per share, which was in line with the day’s closing price. HCA, which recorded after-tax profit of HK$14 million in the last financial year, is expected to complement the international services of Reach, the Internet Protocol backbone venture between PCCW and Telstra Corporation. PCRD is currently trading at S$1.07, up S$0.03.
This article was filed 23 February, 2001 11:27 AM
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