HKT to raise $1b to help refinance CSL buy

Dylan Bushell-Embling
16 Jun 2014
00:00

PCCW-HKT has announced plans to raise just under $1 billion to help refinance debt accrued from the $2.4 billion acquisition of CSL.

The company has launched an 18-for-100 rights issue at an offer price of HK$6.84 ($0.88) per share, a 21% discount to the trading price on the day prior to the announcement. The total value of the offer is $998 million.

Bloombergestimates that HKT has total debt of around $3.9 billion. The rights issue will help the company refinance part of these borrowings.

HKT last month won regulatory approval for the company's deal to acquire Telstra's 76.4% stake in rival mobile operator CSL for $2.425 billion.

The acquisition, which includes the CSL-branded mobile units 1010, one2free and New World Mobility, has made HKT Hong Kong's largest mobile operator with a roughly 37% subscriber share.

The market reacted poorly to the rights issue announcement, with HKT's stock price falling HK$0.24 to HK$8.26 in Friday's trading.

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