PCCW Seeks Listing for Trust

By NISHA GOPALAN And POLLY HUI HONG KONG—PCCW Ltd. is pushing forward with plans to raise up to US2 billion from the listing of its core telecom assets as a business trust, although the regulatory framework that governs such vehicles isn't in place yet, people familiar with the deal said Thursday. The company is planning to seek Hong Kong stock exchange approval for the float on Sept. 8, and is targeting a late October listing for the trust. In addition to listing approval, the PCCW trust will also need shareholder approval. PCCW has yet to set a date for a shareholder vote. In June, Hong Kong's stock exchange approved the carve-out of the telecommunications and mobile assets by PCCW, which also has broadband television, <a href="http://www.gobizdiscount.com/"><strong>Replica ugg boots</strong></a> consulting and property businesses. The exchange initially rejected the proposal in April due to regulatory concerns that it would remove too many core assets from the already-listed former blue-chip company that until the late 1990s held a monopoly as Hong Kong's long-distance fixed-line operator. A spokesman for PCCW declined to comment on the company's plans to seek listing approval next week, but said it is working hard to get the trust listed this year. Hong Kong currently doesn't have regulatory framework in place for the listing of trusts other than real-estate investment trusts, or REITs. Business trusts aren't limited to a particular asset class unlike REITs, which can only include property assets. A stock exchange spokesman said the exchange is working with the Securities and Futures Commission on a business trust regulatory framework that will protect the rights of investors as well as be in line with disclosure and corporate governance requirements for listed issuers. "The remaining issues are highly technical but HKEx hopes they can be resolved soon and that a framework will be ready shortly," he said, without elaborating on whether such framework could be in place before the listing hearing. If successful, PCCW would become the first company to list a business trust in Hong Kong. Singapore already has three business trust listings: Perennial China Retail Trust, Hutchison Port Holdings Trust and Indiabulls Properties Investment Trust. Vivian Lam, a partner at law firm Paul Hastings, said the exchange and the SFC must introduce an appropriate regulatory regime for the listing of business trusts to protect investors. "Our regulators have <a href="http://www.gobizdiscount.com"><strong>Replica UGG marketplace</strong></a> been very positive about this product and given the increasing interest, they will push ahead with the necessary regulatory framework soon," she said. Write to Nisha Gopalan at nisha.gopalan@dowjones.com