PCCW <1186.HK> to clarify unrealised gains -source
HONG KONG, March 17 (Reuters) - Pacific Century CyberWorks Ltd (PCCW) is expected to issue a statement clarifying that unrealised gains from its venture capital investments would not be booked as profit in its accounts, a source close to the company said. Trading in shares of both PCCW and its Singapore parent Pacific Century Regional Developments was suspended on Friday morning, pending a clarification statement regarding a press article appearing on Friday, the companies said in separate statements.
The source said PCCW would clarify a report published in the South China Morning Post on Friday regarding investment gains from the company's holdings in Internet-related companies.
The newspaper said PCCW had booked an unrealised gain of US$1 billion on investments in about a dozen listed Internet-related companies, according to group managing director Alex Arena. "It needed clarification because they used the word 'booked'," the source said. PCCW has invested in 40 companies, some of which are listed, and the unrealised gains merely reflect current market value but are "not on the books", the source added. The company has said it has invested about US$600 million in these companies and the market value of the investments was about US$1.6 billion.
PCCW shares closed on Thursday at HK$19.95, their lowest point since the company agreed to a merger with Cable & Wireless HKT Ltd <0008.HK> on February 29. PCEN shares last traded at S$29.20, up 3.55 percent or S$1.00 on Friday.
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