Trader : PCCW-NEWS
May 15,2000 - 15:53:42 HKT [Quote] [DataCards] [Chart] (1186)
Pacific Century CyberWorks Ltd. (1186) today signed a syndicated loan facility worth US$12 billion with 33 banks led by the Bank of China, HSBC Holdings Plc (0005), Barclays Capital and BNP which will together provide a quarter of the total amount. The remaining US$9 billion will be underwritten by other banks at an interest rate of 1.15 percent per annum.
PCCW's Chairman Richard Li, the younger son of billionaire Li Ka-shing, said it was unexpected news that the loan preparation was completed so quickly. Li said the current interest coverage ratio is 2 times, and he was not worried that the interest expenses would be a burden to the company.
Separately, Managing Director Alex Arena emphasized that its takeover bid for Cable & Wireless HKT Ltd. (0008) will be finished in early August as scheduled. Even if Singapore Telecommunications tabled a fresh bid for HKT, the progress of PCCW's merger plan will remain unaffected.
A source close to SingTel said the company will, within this week, decide on whether to launch a counter proposal and a prospective plan may be proposed together with a PRC-backed company.
HKT and its parent Cable & Wireless Plc. have granted an irrevocable agreement to PCCW's merger plan, said Pacific Century Group deputy chairman Francis Yuen, a former chairman of the Stock Exchange of Hong Kong. Yuen said both HKT and C&W Plc. have agreed to the merger plan pending the approval of the court, after which they will dispatch a recommendation note to their shareholders.
At 15:44 Hong Kong time, PCCW shares rose 1.1 percent to HK$13.75 while HKT shed 1.97 percent to HK$17.40.
[ Quamnet News ]