China Telecom to Spin off Unit

China Telecommunications Group, the parent of Hong Kong-listed China Telecom Corp, plans to spin off its engineering and telecom services arm for a Hong Kong initial public offering to raise between $200 million and $400 million in the second half this year, The Standard reported. China Telecom Group, which provides fixed-line telecom services in 21 provinces in the southern part of China, may bundle part of its engineering and telecom services business into the proposed listing unit. Those assets will come from five or six wealthier provinces and cities, including Guangdong and Shanghai. The group has picked China International Capital Corp and Goldman Sachs as joint sponsors of the offering, adding that the restructuring proposal is not complete, so the fund- raising target may be revised later. Also, China Telecom Group is very keen on the listing of another unit in Hong Kong, and hopes it will be completed by the end of this year. (Source: The Standard)