(SincoCast via NewsEdge) China Telecom has spun off its engineering and service businesses for listing in November, according to an application it submitted to the Stock Exchange of Hong Kong.
According to sources, the major Chinese telco has set up China Communications Service for the listing, and has tapped Goldman Sachs and China International Capital as advisors for the new share offering.
The new company has a registered capital of about 3.96 billion yuan ($500.89 million). China Telecom holds a 91.5% share in it, while Guangdong Telecom Industry Group and Zhejiang Telecom Industry Group has stakes of 6.2% and 2.3%, respectively.
Hong Kong media reports said the service company was expected to raise around 2 billion yuan ($252.97 million) from the share offering.
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