Citic cuts stake in HK Telecom
Tuesday 11 June 1996
Citic Pacific is the locally listed arm of Peking's largest investment company, the China International Trust and Investment Corp, which recently raised its stake in Cathay Pacific Airways from 10 to 25 per cent amid suggestions that it would eventually take control of the airline away from the British-run Swire Pacific.
The sale of its Hongkong Telecom stake raised some HK$3bn (pounds 252m), which will contribute to the HK$6.3bn Citic Pacific needs to raise for the Cathay deal agreed in April and for a clutch of infrastructure projects in China.
This is the second time this year that Citic Pacific has sold down its stake in Hongkong Telecom. In January it raised about the same amount when reducing its share ownership from 12 to 10 per cent. When it first acquired Hongkong Telecom shares in 1988 Citic's holding stood at 20 per cent.
However, the sale cannot be clearly seen as a sign of retreat from Hongkong Telecom because Citic Pacific makes frequent forays into the market to raise cash. In September 1995 it cut its stake in Cathay before returning eight months later to take a far larger share.
The Chinese-controlled company says it sold the shares in order to "refocus" its investment strategy, however it retains a holding in the telecommunications utility in the nearby Portuguese enclave of Macau and had previously identified telecommunications as part of its core business.
Hong Kong investors are keen to find out who bought Citic Pacific's shares, at a hefty 6 per cent discount. The company declines to comment. In recent weeks there have been market rumours that China's second telecommunications network, China United Telecommunications Co, in which Citic Pacific's parent has a significant share, would be buying into Hongkong Telecom.
- 1 Reyhaneh Jabbari: Iran due to execute woman for murder of her alleged attempted rapist
- 2 Sainsbury's '50p challenge' poster telling staff to encourage customers to spend more placed in shop window instead of staff room
- 3 Expert urges cat lovers to own just one animal each
- 4 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 5 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
Expert urges cat lovers to own just one animal each
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...