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Hong Kong Tycoon Li's telecom firm weighs US$1b unit sale
[HONG KONG] A Hong Kong telecommunications firm controlled by tycoon Richard Li is considering options including a sale of its international enterprise unit, PCCW Global, according to people familiar with the matter.
A subsidiary of HKT, the business could be valued at as much as US$1 billion in a sale, said the people, who asked not to be identified because the matter is private. The asset could attract interest from other telecom companies as well as private-equity funds, the people said.
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, has not yet decided the structure of the deal, they said.
No final decision has been made and the company could still decide against pursuing a sale, they 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 per cent, their biggest intraday gain since April 2, following the Bloomberg News report. The stock has risen 7.7 per cent in the year to date, outperforming the Hang Seng index which has fallen 13.8 per cent in the same period.
PCCW Global, based in Hong Kong, offers specialised 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, according to its website.