Category: Money tips Release Date: 2006-02-15
September 21, Singapore-listed company Pacific Century issued a statement saying, Mr. Leung to buy PCCW (0008.HK) 22.66% stake in the Hong Kong dollar deposit paid 500 million credit from the Li Ka-shing, and was repaid July 19.
The surprise announcement of the industry.
July 10, former chairman of Citigroup Global Markets Asia Leung announced a 9.16 billion Hong Kong dollars, from Mr. Li bought the stake in PCCW held by Pacific Century, and has paid 500 million Hong Kong dollar deposit. At that time, newspaper reporter asked him: "Are you behind if Cheung Kong Holdings (0001.HK) Chairman Li Ka-shing? Mr Lee was there to support you financially?" Leung was not a direct response, only repeatedly stressed that trade is a commercial activity, the private investment.
August 24, Cheung Kong and Hutchison Whampoa (0013.HK) the performance of the meeting, Li Ka-shing asked whether the newspaper also involved in the acquisition and financing of PCCW Leung? Li Ka-shing's answer is: "By the second, Liang ( Leung) did not receive my money, do not underestimate the ability of others. However, his source of revenue I do not know, even good friends will not do anything about. "
PCRD's announcement, the Li Ka-shing still "no comment (comment)" as a response. The Richard Li said I do not know the father involved in this transaction.
Leung told reporters that Li Ka-shing to give him the 5 million line of credit not to buy PCCW, but helped him to build a private equity fund, and later eager to pay since the acquisition of PCCW's deposit, they first used this credit revolving 10 days. He said he had informed the use of credit, Li Ka-shing, but did not tell Richard Li.
Li Ka-shing, said a spokesman Li Ka-shing had beams provide 5 billion yuan of funds for their private investments, but there is no specified purpose, intent is more, not for the PCCW deal.
One familiar with the transaction of the investment banking officials told this newspaper that the Singapore Exchange (hereinafter referred to as "SGX") pursued vigorously under the Li Ka-shing Leung forced to disclose the credit relationship, which to its acquisition of PCCW Shares added variables.
He pointed out that, because if the SGX is Richard Li, the association identified Li Ka-shing who PCG Richard Li sold to Leung's main asset (PCCW's shares) would be related party transactions, Mr Li will not be able to vote at the Extraordinary General Meeting. As the representative of the interests of small shareholders, the Securities Investors Association of Singapore has advised minority shareholders not to accept transactions in order to expect a better price to sell stake in PCCW, the transaction is likely to fall through.
In addition, as Li Ka-shing's Hutchison Whampoa also operate to hold the telecommunications business, and have Metro stations, Li Ka-shing Hong Kong involved in the transaction would violate the Telecommunications Ordinance and Broadcasting Ordinance, the relevant anti-monopoly provisions, the transaction may not be carried out smoothly.
Hong Kong Stock Exchange in the incident have also been criticisms that the disclosure of information are unregulated. HKEx Chief Executive Paul Chow told this newspaper innocence: "We have to figure out the sale and the sale of assets, respectively, PCG sell its main asset, SGX must ask whether the buyer and the seller to disclose related-party transactions. As for the HKEx is , this is the majority shareholder to sell its shares, there is no so-called related-party transactions - what price large shareholders prefer to sell to anyone, whether his father or son is not important. "
He said: "Behind the sources of finance buyers we do not care, more than 1000 listed companies in Hong Kong every day, tens of thousands of equity transactions, we will not control things behind."
If the Li Ka-shing and sellers on the surface of non-associated persons, in fact, through Leung as an agent, is this tantamount regulatory loopholes? Declined to comment, Paul Chow, HKEx has not only reiterated dereliction of duty.
Leung Hong Kong market for the combination of a lot of the shareholders behind the rumors, one of which version is that Li Ka-shing will hold 9.9% of which are now held by China Netcom (0906.HK) 5% interest in the Spanish telecommunications company Telefonica, as well as investment bank Goldman Sachs, is take into account the interests of holders of 5%, the remainder by Leung continue to hold. Netcom's parent company, China Netcom Group, currently holds 20% stake in PCCW, is the second largest shareholder. Indicated above with an organization, would not comment on market rumors.
The investment bank executives told this newspaper explained that the planned Li Ka-shing owned 9.9%, it is because the Hong Kong Listing Rules, if the shareholder holds 10 percent, are classified as major shareholders of listed companies and associated community, so the 9.9% stake, just to avoid the regulatory boundaries.
