PCCW Ltd. (0008:HK), the Hong Kong-based telecommunications, media, and technology conglomerate controlled by billionaire Richard Li, is contemplating a significant minority stake sale in its fiber business that could reach about $1 billion, Bloomberg reported. Though nothing formal has been announced, the company is working with a financial adviser on a potential transaction that has drawn interest from Chinese investors as well as Middle Eastern sovereign wealth funds, according to sources.
PCCW has its origin dating back nearly 100 years ago with the founding of the Hong Kong Telephone Co. The company holds interests in a range of businesses including telecommunications, media, IT solutions, property development and investment. PCCW’s stock has grown nearly 17 percent over the past year, giving the firm a market capitalization of roughly $4 billion.
The company has sold stakes in some of its operations in recent years. In June, Canal+, the French broadcaster owned by billionaire Vincent Bollore’s Vivendi SE, agreed to buy a large minority stake in Viu, an over-the-top video service under PCCW, as part of a partnership between the two media groups.
In 2021, PCCW sold its data center business to DigitalBridge Group (NYSE: DBRG) for $750 million, Inside Towers reported. This deal gave DigitalBridge a regional platform with nine data centers in Hong Kong, China, and Malaysia. A year later, the conglomerate divested its stakes in PCCW Lenovo Technology Solutions and PCCW Network Services to Lenovo Group Ltd. for about $614 million.
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