Richard Li’s Hong Kong telecommunications business HKT is considering options for its international enterprise unit PCCW Global, Bloomberg reported, citing people familiar with the matter.
According to the sources, the alternatives being considered include a sale, which could value the entity at around USD 1.00 billion.
The seller is controlled by PCCW Ltd, a Hong Kong information and communication technology company, known for being the majority owner of HKT, while also holding a majority interest in Pacific Century Premium Developments.
PCCW Global is likely to attract other telecommunication companies as well as private equity firms, the insiders noted, asking not to be named as the information is still confidential.
The people in the know cautioned that while HKT is considering a sale, deliberations are still in the early stages and no final decision regarding the structure of any deal has been made at this time.
However, a formal process could start before the end of the year, the sources noted, cautioning plans could still fall apart and the company may decide against a sale.
PCCW Global offers specialised voice and data services to global companies and other communications providers.
It has operations across 160 countries, providing connectivity, applications and on-demand digital platforms.
When contacted by Bloomberg, a representative for HKT said PCCW Global is an integral part of its business and declined to comment any further.
Shares in HKT declined 2.4 per cent to HKD 11.60 (USD 1.50) at 15:47 today, giving the company a market capitalisation of HKD 87.88 billion.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 170 deals targeting Hong Kong-based companies announced in 2020 to date.
None of these featured a telecommunications company, with the largest transaction involving Bank of Communications injecting HKD 30.00 billion-worth of capital into Bank of Communications (Hong Kong).
Casino resort business Galaxy Entertainment Group, biofuels and biochemicals manufacturer China Agri-Industries Holding and property manager China Overseas Land & Investment, among others, were also targeted in the year so far.
© Zephus Ltd