Pacific Century Regional Developments (PCRD), the Singapore-listed flagship of Richard Li Tzar-kai (below), spent more than HK$29 million yesterday to boost its stake in PCCW amid growing concerns the telecommunications giant's privatisation might be derailed by a regulatory probe.
PCRD bought 7.5 million PCCW shares at between HK$3.89 and HK$3.98 each, according to a filing with the Hong Kong stock exchange. That increased its holding to 1.54 billion shares or a 22.79 per cent stake from 22.68 per cent previously.
The price was less than the HK$4.50 a share PCRD and China Unicom Group offered to pay to buy out other shareholders, reflecting a lack of confidence among investors that the deal would go ahead as planned.
Shares in PCCW closed up 3.12 per cent yesterday at HK$3.97, still 11.78 per cent below the offer price.
'Investors are taking the opportunity to sell the stock given the uncertainty on when the buyout scheme would be closed,' a fund manager said yesterday.
PCCW last week said the first high court hearing regarding the proposed capital reduction, a prerequisite for the buyout, was postponed to February 24 from yesterday. The company still has not announced the date of the second high court hearing regarding the buyout scheme.