Hong Kong’s Office of the Telecommunications Authority (OFTA) has given its consent to the proposed privatisation (delisting) of former monopoly telecom operator PCCW.

Hong Kong’s Office of the Telecommunications Authority (OFTA) has given its consent to the proposed privatisation (delisting) of former monopoly telecom operator PCCW. According to OFTA, the proposed privatisation is not likely to substantially reduce competition in Hong Kong’s telecommunications market. The authority’s consent is specific to the terms of the arrangement set out in an announcement by PCCW on November 4, 2008.

The announcement stated that after the transaction, companies connected with PCCW chairman Richard Li would hold 66.67 per cent of PCCW, and the China Netcom Group would hold the remaining 33.33 per cent. As of November 4, 2008, PCRD (controlled by Li) and China Netcom respectively held 22.54 per cent and 19.84 per cent stakes of the issued share capital of PCCW. Other companies controlled by Li together held 5.2 per cent stake. The remaining 52.42 per cent of PCCW’s share capital was publicly held.