HONG KONG - HONG Kong's telecoms regulator said Tuesday it had given the green light for PCCW's 15.5 billion Hong Kong dollar (S$2.74 billion) plan to buy out its minority shareholders.
'The Telecommunications Authority has formed an opinion that the proposed privatisation would not have, or would not be likely to have, the effect of substantially lessening competition in a telecommunications market in Hong Kong,' a spokesman for the Office of the Telecommunications Authority said.
'Accordingly, the Telecommunications Authority has given consent to the proposed privatisation.' PCCW, the city's main fixed-line operator, and China Netcom have offered minority shareholders 4.20 dollars a share to take the firm private.
Shareholders are scheduled to vote on the proposal on Dec 30. The proposal needs the support of 75 per cent of shareholders to pass, but some have voiced disquiet, suggesting the offer price is too low.
The company's biggest shareholder is its chairman Richard Li.
PCCW said in October it wanted to take the company private because the shares had not performed 'satisfactorily.' -- AFP
