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October 22, 2008
Richard Li seen making moves to exit PCCW
Speculation rife that a buyout or privatisation is on the cards
By JANE MOIR IN HONG KONG - BT
TELECOMS tycoon Richard Li is expected to pave the way for an exit strategy from PCCW, with a buyout or privatisation topping the list of possibilities.
Speculation has been rife that the son of veteran property tycoon Li Ka-shing is preparing to transfer ownership to another company within his control as the precursor to a sale, or that a privatisation is on the cards.
The stock was suspended on Oct 14 pending a price-sensitive announcement.
Shares of Singapore-listed Pacific Century Regional Developments Ltd (PCRD) were also suspended from trading. Mr Li and PCRD own 28.3 per cent of PCCW shares.
Before the stock was suspended, shares in PCCW were trading at HK$2.90.
Observers are however wary of a privatisation, given the current low valuation of the company.
Higher volumes than normal with price increase today.
Worth to take a look.
Vested.
It surged after Belgian-Dutch financial services group Fortis said it would buy a controlling stake in Pacific Century Insurance Holdings. Hong Kong tycoon Richard Li controls Pacific Century Insurance through PCRD.
Fortis said it would pay about US$453 million for a 50.48 % stake in the insurer, in a bid to eventually take over the entire company.
What is the result!
i think price will stay stagnant till better offer comes along from Mr. Li.
Can somebody tell me the counter will go up or down..if
agree to sell PCCW or
not agree to sell PCCW.
I am very confused with the latest situation...going to vote this thurs!
Investors,
please tell me why the stock has dropped 15% since the last few days!
any bad news in the market.......
Francis Leung may soon announce composition of a consortium, including a Li Ka-shing trust, in buying a controlling stake in PCCW, the Ming Pao Daily News reported on Tuesday.
The newspaper cited sources as saying the consortium, which would buy the stake in PCCW from Richard Li's PCRD
The trust would take 9.9% of PCCW and the other two parties would take the remaining 12.77%, the paper said. It gave no further details.
The sale to Leung, a financier who is close to the Li family as well as Beijing, had led to market speculation that Li Ka-shing had financed the deal to help his son exit what had been a troublesome investment since the younger Li's Internet startup paid US$28.5 billion in 2000 for Hong Kong's former phone monopoly.
Yes. I think you should sell.
Shares were lower as investors now expect the proposed sale of PCRD's 23% stake in PCCW to Hong Kong businessman Francis Leung for HK$9.2 bln to fail, after the Singapore Exchange barred PCCW chairman Richard Li from voting on the divestment proposal.
The exchange issued the ruling after Li failed to assure SGX that there was no link between him and his associates on the one hand and Leung's bid on the other.
PCRD quoted a statement from SGX as saying: "Since assurance that relevant parties will not be involved in the sale is not being provided, the SGX therefore requires Li and his associates to abstain from voting on the sale at the EGM to be held." The date of the EGM has not been set.
In September, PCRD said the HK$500-mln deposit made by Leung for his purchase of PCRD's stake in PCCW had come from a facility provided by Li's father, tycoon Li Ka-shing. PCRD said the facility was provided by Li senior to Leung before Leung had negotiated the purchase of PCRD's stake in PCCW.
SGX has also directed PCRD to appoint an independent financial adviser to advise minority shareholders in PCRD on whether or not the proposed sale of the its stake in PCCW is beneficial to them.
"It's good that SGX is putting its foot down on this deal," a dealer with a local brokerage.
"PCRD's PCCW stake is worth a lot more. Nobody will vote for it," the dealer said.
Australia's Macquarie Bank and US private equity firm TPG-Newbridge Capital group had in July proposed to buy PCCW's telecom and media assets, but the bids were dropped following objections from China Netcom, which holds a 20% stake in PCCW.
Seniors,
Pls provide some insights about this stock, i have some lots during wayback in the early 2000....should i sell it since it has climb to year high! cheers.
Price creeping up again these few days. Anyone know any news? Thanks.
Volume and price has increased today. Any news?
It's comfirmed.
Pacific Century Group, an investment vehicle of Hong Kong tycoon Richard Li, is making an offer to take over the remainder of PCRD, PCRD said.
The new offer comes after US private equity firm TPG Newbridge and Pacific Century Group agreed that TPG Newbridge would drop its own bid for PCRD, PCRD said in a statement issued late yesterday.
TPG Newbridge will receive compensation in an undisclosed form from companies controlled by Li.
PCRD's other minority shareholders will still receive $0.305 a share -- the same price offered by TPG Newbridge. The TPG Newbridge offer had been due to lapse on Saturday.
PCRD said it would hold a shareholders meeting at the end of November to vote on Pacific Century Group's offer.
Richard Li, who owns 75% of PCRD, may offer to buy all the other shares in PCRD after it completes the sale of its 23% stake in PCCW, the South China Morning Post reported, without disclosing its sources.
The newspaper also said the Pacific Century group had agreed to sell the office portion of its Pacific Century Place office and commercial development in Tokyo for US$1.7b.
The Pacific Century group is jointly controlled by Li and Hutchison Whampoa, a Hong Kong conglomerate controlled by Li's father, Li Ka-shing.
PCRD has revised upwards its first-half results, after taking into account its share of profits from PCCW. PCRD posted a profit of $35.2m boosted by a $37.6m share of profits of associated companies. In August, PCRD had announced a first-half loss of $7m as the results of PCCW were not available then.
I sold for 0.35 in the morning, never expected to inch up another 1 cent later.
May reach 52-week high of $0.385.
Hi Nostradamus Master, thanks alot, at least now i have a clearer picture of what to do with the next step.
patseow8, it looks like turning south. Could reach around $0.285 or lower if market is weak. May not break above $0.345 in the next few weeks.
Nostradamus Master, what is your opinion of the future prosepct of PCRD? Should I sell now or wait for a while, vested 30k @0.36. Thanks.