Pacific Century CyberWorks (PCCW) plans to 'rationalise' its overlapping portfolio of data-centre firms in a move that 'may or may not' see assets injected into its new listing, iLink Holdings. The shake-up of PCCW's data-centre business will follow the planned listing of its 40.84 per cent owned iLink Holdings on the Growth Enterprise Market. ILink, a Hong Kong-based data-centre operator, competes with other PCCW units Powerb@se , Beijing Centergate Data Technologies Co and a data-centre joint venture with Telstra of Australia. The rationalisation could result in its data-centre units being combined within iLink following the firms listing, according to a leaked iLink offering document. In an elliptically worded statement, the offering prospectus said: 'PCCW may draw up a plan to rationalise such businesses. PCCW may or may not combine its data centre businesses and/or interests with iLink.net and there is no specific timetable . . . to rationalise the data centre businesses.' ILink launches its share offering today to raise between HK$121 million and HK$140.8 million by selling 110 million new shares - about 10.5 per cent of the enlarged share capital - at HK$1.10 to HK$1.28 each. 'There can be no assurance that the plan of any such rationalisation will not conflict with the interests of iLink Holdings,' the prospectus warned. PCCW's disparate data-centre interests are a product of its recent history. Its first investment in iLink was in September 1999, via its investment arm, CyberVentures. After the takeover of Cable & Wireless HKT last August, PCCW inherited HKT's data-centre businesses - wholly owned Powerb@se , 42.5 per cent owned Beijing Centergate and the 50 per cent owned Telstra joint venture. ILink primarily provides server hosting services and application services in Hong Kong, operating at a much smaller scale than Powerb@se . For example, iLink runs about 40,000 square feet of data centres in the SAR compared to 300,000 sq ft by Powerb@se . PCCW said iLink's client base was composed mainly of Hong Kong small and medium-sized enterprises, which were a different business segment to Powerb@se , which demanded higher bandwidth services. To avoid potential conflicts of interest among the investments, PCCW promised to the stock exchange that its iLink board representatives would abstain from voting in any iLink's meetings discussing business development and opportunities. Geographically, PCCW argued the Telstra data-centre joint venture focused development in the Asia-Pacific, excluding Hong Kong and Australia, while Beijing Centergate focused on Beijing. Beijing Centergate operates Web site management and has been developing data centres in Beijing since last July, while the Telstra joint venture is seeking to expand its data-centre business in the Asia-Pacific, excluding Hong Kong and Australia. Asia-Pacific, Beijing and other mainland cities are iLink's target markets. ILink plans to spend HK$59 million of the proceeds setting up data centres in Asia this year.