PCCW flotation

PCCW in Hong Kong is looking to raise as much as 10bn Hong Kong dollars ($1.3bn) in a share sale. The company said it was planning to spin off its telecom unit into a publicly traded trust. A major slice of the money raised will be used to pay off the firm’s debts.

“The directors believe that the separate listing will allow the telecommunications business to create a more defined business focus and efficient resource allocation,” the company said.

The telecoms business accounted for almost 80 per cent of the company’s total revenue for the financial year to the end of December 2010.

PCCW said that given the importance of the business unit, its separation from other businesses should translate into a higher market value.

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