Jan. 29, 2007 (China Knowledge) – CITIC Pacific <0267> may make a profit of HK$1.8 billion from the listing of its wholly owned telecom unit, reported The Standard citing unnamed market sources. CITIC Pacific, the Hong Kong-listed arm of CITIC Group, may sell up to 35% of existing shares of CITIC 1616's enlarged share capital to boost profit for this year, the report said. In contrast, new shares offered will only be about 10% of the telecom subsidiary. According to the report, the company plans to list CITIC 1616 with a price-to-earnings multiple of at least 20 times for this year, raising US$300 million by the end of March. CITIC is expected to retain a controlling stake in CITIC 1616, and might hold at least a 50% stake in the telecom unit. The spinoff of CITIC 1616, which is betting on the issuing of 3G licenses to spur its profits from this year, is seen as CITIC Pacific wanting to focus on its core businesses which include iron ore, China property and special steel.
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