PCCW aims to sell 11.1% of HKT for $1.1b

telecomasia.net

Hong Kong's PCCW plans to raise HK$8.53 billion ($1.09 billion) through the sale of 840.7 million share stapled units in subsidiary HKT.

The company plans to use the proceeds from the sale for debt repayment, further investments in media and IT services businesses and other general corporate purposes.

PCCW is pursuing regional expansion, including with plans to extend its OTT video service Viu into Thailand, and to continue its expansion into eastern China. The proceeds could help the operator pursue these growth ambitions.

The sale would represent a roughly 11.1% stake in HKT, and dilute PCCW's share in the operator to around 51.97%.

Goldman Sachs is managing the planned transaction, which has a placing price of HK$10.15 per unit.

Shares in PCCW fell 5.97% to HK$4.57 at close of trading on Monday after the planned placement was announced. HKT shares meanwhile shrank 7.4% to HK$10.26.

The transaction would mark the second major divestment by tycoon Richard Li's PCCW this month, following the sale of Transvision – the owner of mobile broadband licensee UK Broadband - to Three UK last week for £300 million ($375.9 million). 

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