Electricity supplier Power Assets Holdings Ltd's plan to spin off its Hong Kong electricity business is a commercial decision and shouldn't be seen as a withdrawal of capital from Hong Kong, according to a statement issued Friday by Power Assets.

Power Assets, controlled by Asia's richest man Li Ka-shing, is seeking to raise as much as 5 billion U.S. dollars by spinning off its subsidiary Hongkong Electric Co. through a listing of share stapled units.

The plan added to speculation that Li Ka-shing is selling assets in Hong Kong, where growth is slowing, as he pursues acquisitions in Europe.

To soothe market worries, Power Assets said in the statement that the plan may not be necessarily carried out as it's still subject to approvals from the Hong Kong Stock Exchange, the board of directors and the shareholders, adding that the IPO price has not been set yet. Endi

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