HKT mulling sale of PCCW GlobalBusiness | Agencies and Winnie Lee 4 Jun 2020
HKT Trust and HKT (6823), controlled by tycoon Richard Li Tzar-kai, is considering the sale of its international enterprise unit, PCCW Global, according to people familiar with the matter.
PCCW Global's main business is providing telecommunication services, data, voice messages, internet security and cloud service for enterprises. Its internet coverage spans 160 countries.
A subsidiary of HKT, the business could be valued at as much as US$1 billion (HK$7.8 billion) in a sale, said the people, who asked not to be identified because the matter is private, and that it could attract interest from other telecom companies as well as private equity funds.
Sale considerations are at an early stage, while a formal process could start as soon as later this year, the people said. HKT, which is controlled by PCCW (0008), has not yet decided the structure of the deal, they added.
No final decision has been made and the company could still decide against pursuing a sale, the people said. A representative for HKT said PCCW Global is an integral part of HKT's business and declined to comment further.
Shares in HKT climbed as much as 6.5 percent, their biggest intraday gain since April 2, and closed at HK$11.88, up by 4.57 percent.
In other news, Hong Kong Chinese Orchestra and 3 Hong Kong will hold an outdoor charity concert on June 13 that will be broadcast live on Facebook and You Tube.
Yan Huichang, artistic director and principal conductor of the Hong Kong Chinese Orchestra, said 5G can reduce the latency of the live broadcast.