Hot stock: PCRD edges up on Richard Li's PCCW plans to cut stake in HK phone giant

THE share price of Pacific Century Regional Developments (PCRD) inched higher on Monday after its associate, PCCW, said it would sell a 11.10 per cent stake, worth HK$8.53 billion, in Hong Kong's largest telecom company as part of a strategic shift towards core media and solutions businesses.

PCRD's most significant investment is its stake in Hong Kong-listed PCCW, which is expected to recognise a credit of about HK$7.6 billion from the stake reduction.

PCRD, which opened at S$0.355 a share on the Singapore Exchange on Monday, is trading around S$0.390 at 03:09pm, up 5 Singapore cents, or 14.706 per cent. About 5 million shares changed hands.

Hong Kong billionaire Richard Li's PCCW intends to place some 840.7 million shares in stake in telecommunications unit HKT Trust & HKT Ltd, at HK$10.15 a piece. The placement price represents a discount of about 8.4 per cent to its previous closing price at HK$11.08 a piece.

After the sale, PCCW will hold 51.97 per cent of HKTel, down from 63.07 per cent before. Mr Li is also the chairman of Singapore-listed PCRD.

Last year, telecom services accounted for more than 80 per cent of PCCW's revenue.

In Hong Kong, news of the placement shocked the market. HKT plunged more than 7 per cent to HK$10.22 a piece, while PCCW also tumbled 4.53 per cent to HK$4.64.