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

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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.

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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.