Red-chip candidate China Telecom (Hong Kong) (CTHK) says it has no present intention of acquiring its parent's 5.5 per cent stake in Hongkong Telecom as it wants to focus on the mainland cellular phone business.
Application forms for the float - the biggest in Hong Kong history, raising a potential $32 billion - are available today with shares due to start trading in Hong Kong on October 23. Chairman Shi Cuiming said future asset injections would, for the time being, be restricted to the mainland mobile phone industry.
'We have not thought of buying other types of assets,' he said.
Under an agreement with the Hong Kong stock exchange, Mr Shi said the company would only acquire assets from parent China Telecom (Hong Kong) Group, which is owned by the Ministry of Posts and Telecommunications (MPT), six months after the listing.
CTHK, the only foreign-listed vehicle of the MPT's cellular phone operation - shares will begin trading in New York on October 22 - is expected to embark on a string of asset injections to raise earnings growth once the six-month deadline has been met.
Speculation is rife its parent will boost its stake in Hongkong Telecom through a share swap using CTHK shares, with the listed arm eventually holding the Hongkong Telecom stake.
