Hartcourt Companies (fka HRCT)

[Minddoc7]

At the risk of being redundant another article mentioning that
companies have decided to postpone listing due to poor Market
conditions.
Friday, March 30, 2001
Pacific Broadband sets target of US$200m


HUI YUK-MIN




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Taiwan-based Pacific Construction Group plans to spin off its cable-television arm for a listing on the Hong Kong main board, according to banking sources.
Pacific Broadband, the third- largest cable TV operator in Taiwan, hopes to raise up to US$200 million from the flotation.

The proceeds would mainly be used to roll out its cable broadband network in Taiwan. The company, which is a subsidiary of Taiwanese conglomerate Pacific Construction Group, has a subscriber base of 600,000 households.

ING Barings has been appointed the sole bookrunner on the deal.

Sources said the company originally planned to merge with Taiwan Broadband Telecoms Corp, but later decided to seek an individual listing instead.

Pacific Broadband is waiting for Hong Kong Exchanges and Clearing approval and hopes to see its shares begin trading in the middle of this year.

If the listing plan progresses smoothly, it will become the biggest initial public offering on the Hong Kong market so far this year.

A number of companies have postponed their listing plans due to the sluggish market.

The Pacific Broadband move is the latest effort by a key Taiwan conglomerate to spin off a unit for a Hong Kong listing.

In January last year, Taiwan's largest textile conglomerate Far Eastern Textile group spun off its Shanghai polyester manufacturing unit, Far Eastern Polychem Industries, for a listing on the Growth Enterprise Market.

Investment bankers said Taiwanese companies were interested in listing their businesses in Hong Kong as the Taiwanese listing regulations had too many constraints.

"It takes a far longer period for companies to get listed in Taiwan, and companies need to apply for a quota before they can list," a banker said.

Investment bankers also said the Taiwanese Government's restriction limiting domestic companies to domestic investment also discouraged companies from seeking local listings.