PCCW said it would book a one-off gain of about $160 million from the sale of a 79.72 per cent stake in its non-core Japanese mobile gaming business, Jaleco, to an investment fund.
The fixed-line operator yesterday said that it had agreed to sell its entire 79.72 per cent stake in Jaleco for US$47 million to independent third party Sandringham Fund.
The deal is expected to be completed by the end of next month.
Over the past two years, PCCW has pursued a strategy of selling non-core assets.
'Non-core businesses including Jaleco, its Indian data businesses and UK wireless broadband business incurred a loss before interest, taxes, depreciation and amortisation of about $1 billion last year,' said an analyst.
As of last month, PCCW had net debt of $15.2 billon, taking into account a US$1 billion in proceeds it got from selling a 20 per cent stake to China Network Communications Group Corp, and US$324 million from the sale of PCCW Tower in February, the analyst said.