Li Ka-Shing to purchase UK broadband assets from younger son

[HONG KONG] Billionaire Li Ka-shing agreed to buy a telecommunications business in the UK from his younger son for £300 million (S$528 million) in a shuffling of assets within Hong Kong's richest family.

Through CK Hutchison Holdings Ltd's Three UK, Mr Li will pay his son's PCCW Ltd £250 million in cash and £50 million in credit vouchers for UK Broadband, which holds spectrum and wireless network assets, according to a filing in Hong Kong on Monday.

PCCW, controlled by billionaire Richard Li, expects to post a gain of about HK$1.3 billion (S$237 million) from the deal, it said.

Though transactions between the father and son are rare, they occasionally happen as in the case of when Richard Li's PCCW agreed to buy satellite assets from his father in 2001.

PCCW may spend the proceeds investing in his media business or for general corporate purposes, it said.

PCCW shares fell 0.2 per cent to HK$4.74 in Hong Kong on Monday before the announcement.

BLOOMBERG