The Office of the Telecommunications Authority of the Hong Kong Special Administrative Region has announced that it has agreed on allowing privatizing PCCW, one of the largest and most comprehensive communications providers in Hong Kong.
A spokesperson from the OFTA says the director of OFTA believes that the privatization of PCCW will not greatly reduce the competition in Hong Kong's telecommunications market.
PCCW announced on November 4, 2008 that its two major shareholders, Pacific Century Regional Developments managed by Richard Li and China Netcom, raised a suggestion about the privatization of PCCW.
By November 4, Pacific Century Regional Developments and China Netcom held 22.54% and 19.84% of PCCW's issued shares, respectively, other companies owned by Li jointly owned a 5.2% stake of the company and the rest 52.42% stake was owned by the public. If the privatization initiative is approved by the shareholders of PCCW, Li will hold a 66.67% stake in PCCW while China Netcom will hold a 33.33% stake.