PCCW Starts Trading After Merging with Cable and Wireless HKTHong Kong's Internet firm Pacific Century CyberWorks Ltd. (PCCW) started trading on the local stock market on Thursday following its successful merger with Cable and Wireless HKT, the firm said."We have begun trading today under the No. 8 stock code," which was previously used by Cable and Wireless HKT, said a spokeswoman for PCCW. Cable and Wireless HKT's listing was withdrawn from the Hong Kong Stock Exchange after its last day of trade on August 8. PCCW remained as the sole listed entity after the US$36 billion merger, the largest ever in Asia outside Japan. PCCW lost 40 Hong Kong cents (5.13 US cents) to US$15.40 in early trade. Meanwhile PCCW, chaired by Richard Li, youngest son of tycoon Li Ka-shing, said a copy of the court order sanctioning its merger with Cable and Wireless HKT had been filed with the companies registry in Hong Kong and that all the conditions of the merger had been satisfied or waived. PCCW said it will issue about 8.67 billion new ordinary shares, or 38.5 percent of the enlarged issued share capital of PCCW, to investors entitled to the shares in the merger scheme. The company will pay out a total of US$11.32 billion to investors who were offered four choices including an all-share alternative, a cash and share combination, a mix and match option (a combination of the all-share alternative and the cash and share combination) and an increased cash option. It is anticipated that share certificates for PCCW shares and cheques for cash entitlements will be posted to eligible Cable and Wireless HKT shareholders on or before August 21, the company said. In June, shareholders in British parent company Cable and Wireless plc approved the sale of the company's controlling stake in its Hong Kong telecoms business to PCCW. On July 3, shareholders in Cable and Wireless HKT overwhelmingly voted in favour of the cash-and-share deal worth US$28.2 billion. |
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