Tycoon Richard Li Tzar-kai's PCCW (0008) is exploring to sell its information technology and data centers business PCCW Solutions for over US$1 billion (HK$7.8 billion), people with the familiar matter said.
PCCW, a Hong Kong telecommunications, media and technology conglomerate, is working with a financial adviser as it evaluates a possible transaction that could value PCCW Solutions at more than US$1 billion (HK$7.8 billion), the people said, asking not to be identified because the matter is private.
Prospective suitors including other telecom companies and private equity firms have expressed interest in acquiring all or part of the business, the people said.
PCCW Solutions offers digital services including IT, cloud computing, internet of things, e-commerce and data centers, according to its website. It has a presence in Hong Kong, mainland China and Southeast Asia.
Considerations are preliminary and PCCW could decide to retain the assets, the people said. A representative for PCCW declined to comment.
PCCW edged 0.23 percent higher to HK$4.42 yesterday.
Hong Kong telecommunications firm HKT (6823), which is controlled by PCCW, last year drew preliminary interest from investment funds for its international enterprise unit, PCCW Global, people familiar with the matter said at the time.
In response the company said that it did not comment on market rumors, but emphasized that PCCW Global is an important part of HKT's business.
PCCW Global offers specialized voice and data services to global companies and other communications providers. Its network spans more than 160 countries, providing services including connectivity, applications and on-demand digital platforms.
Yesterday, HKT rose slightly by 0.36 percent to close at HK$11.12.
PCCW Solutions has a presence in Hong Kong, mainland China and Southeast Asia. SING TAO
