Hong Kong Exchange to issue guidelines on PCCW asset transfer waiver next week

HONG KONG (AFX-ASIA) - Hong Kong Exchanges and Clearing Ltd said it will issue guidelines next week on its waiver given to Pacific Century CyberWorks Ltd allowing it to undertake transactions involving assets under 2 bln hkd without shareholder or stock exchange approvals, chief executive Kwong Ki-chi said."We will issue some guidelines next week regarding PCCW's case after the waiver period expires," he said.Under the waiver, PCCW can buy or sell assets worth less than 2 bln hkd without requiring shareholder or stock exchange approval.PCCW has a net liability of 14.133 bln hkd after it decided to write off the 22 bln usd goodwill arising from the purchase of HKT from its reserves.Under such a scenario, PCCW needs to seek shareholder approval on any asset purchase as the asset is worth more than the company's net assets.

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