Eight bid for stake in PCCW's HKT
Telecommunications giant PCCW has received proposals from eight bidders for its 45 per cent stake in HKT Group valued at up to US$2.6 billion, sources said yesterday.
The sources said China Netcom Group, which holds 20 per cent of PCCW, and China Unicom Group, which is merging with Netcom, did not submit a bid.
Official shortlisted bidders would be decided as early as tomorrow for a second round of bidding, the sources said.
The transaction was expected to be completed by the end of this year, they said.
With the mainland firms likely shying away from bidding, the majority of the bidders appear to be backed by foreign capital. Private equity funds including Providence Equity Partners, TPG, Macquarie, Kohlberg Kravis Roberts and Blackstone Group planned to submit bids, sources said last week.
UBS, the sole financial adviser for PCCW, yesterday said it received a number of proposals and was evaluating them. PCCW did not comment.
HKT is a company newly formed by PCCW to hold its fixed-line, broadband, mobile-telephone and pay-television businesses. PCCW will hold on to 55 per cent of HKT.
PCCW said in an announcement in May that the offering of HKT stake to new investors could help unlock the value of the company's core telecommunications and media businesses. The company did not rule out the separate listing of HKT in the future.
After the restructuring, PCCW will resemble an investment holding firm with a 55 per cent stake in HKT, a 61.53 per cent stake in Hong Kong-listed Pacific Century Premium Developments, a property developer, and several other businesses such as UK Broadband, which holds a nationwide wireless broadband licence in Britain.
Shares in PCCW yesterday fell 1.22 per cent to close at HK$4.87.
