Market Consultation On Proposed Changes To Practice Note 15 To The Stock Exchange Of Hong Kong Listing Rules Relating To The Requirements With Regard To The Remaining Business Of Listed Issuers After Spin-Off Of Assets Or Businesses
Practice Note 15 to the Exchange Listing Rules sets out the Exchange's requirements on proposals submitted by listed issuers to effect a separate listing of assets or businesses wholly or partly within their existing group ("spin-offs"). The requirements apply irrespective of whether the entity ("Newco") to be spun off by an existing listed issuer (the "Parent") is to be listed on the Exchange or elsewhere.
In view of market developments, the Exchange proposes to amend the requirements relating to the remaining business of the Parent, principally the minimum profit requirement set out in Rule 8.05 of the Exchange Listing Rules. The Exchange proposes that, if the Parent is able to satisfy certain criteria, it may grant a waiver to the Parent from strict compliance with the minimum profit requirement under Rule 8.05 in respect of its remaining business after the spin-off.
The Exchange would like to seek the market's views on the proposal and any alternative approach in this regard.
