HKT Trust plans $1.01 bln rights issue to reduce debt
HONG KONG, June 13
HONG KONG, June 13 (Reuters) - HKT Trust, owned by Hong Kong telecom operator PCCW Ltd, said it plans to issue $1.01 billion worth of rights to buy trust units, raising capital to reduce debt after a deal to buy a mobile telecom services provider.
HKT Trust said in a statement on Friday it will issue 1.16 billion rights to buy units in the proportion of 18 units for every 100 existing units held. The units will be issued at HK$6.84 apiece, representing a 20.65 percent discount to the previous close.
Last December, Australia's biggest phone company Telstra Corp agreed to sell its Hong Kong mobile phone business, CSL New World Mobility Ltd, to the unit of PCCW, a company controlled by tycoon Richard Li, in a deal worth $2.4 billion.
Citigroup, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley and Standard Chartered are joint underwriters of the rights issue. (Reporting by Donny Kwok; Editing by Kenneth Maxwell)