Citigroup yesterday stunned the market with one of the more audacious trades of the year - selling Cable Wireless's remaining 14% block of the company for $400 million.
The hard underwritten deal was covered within an hour of the deal's launch, although the transaction was not closed until five hours later, at which point it was 4.3 times subscribed.
Citi priced the deal at the tight end of the range, which at HK$4.78 was a 9% discount to the prevailing PCCW stock price. No fee was disclosed, but FinanceAsia calculates that Citi made around $19.2 million. To put this in perspective, that is about 50% of the entire equity...
