Tycoon financed the HK$500m initial deposit paid by Francis Leung for 23pc of telecoms company Li Ka-shing, whose son Richard sold 23 per cent of Hong Kong's biggest telecommunications firm earlier this year, financed the HK$500 million initial deposit on the deal paid by the buyer, former investment banker Francis Leung Pak-to, sources familiar with the situation said yesterday. Mr Leung agreed in July to buy the stake, the single-largest holding in PCCW, from Richard Li Tzar-kai's Singapore-listed Pacific Century Regional Developments for HK$9.1 billion. It is understood that Mr Leung has not yet finalised his proposed consortium of private and strategic investors that he said will provide the financing for the acquisition. Pacific Century Regional Developments in July said that Mr Leung, a former Citigroup banker, would pay the HK$9.1 billion in three instalments over 18 months at 6.5 per cent interest. The first instalment is due at the end of November. The Singapore Exchange for two months has studied whether Mr Leung's source of funding for the acquisition was related to Mr Richard Li or related persons, which would affect Mr Richard Li's voting rights on the deal, a source said. Mr Leung used a facility originally provided for his personal investment by Mr Li Ka-shing, Hong Kong's richest businessman, as a temporary source of financing for the payment of HK$500 million into an escrow account in connection with the deal. Mr Leung refinanced the funds drawn under the facility on July 19, repaying the amount used and interest incurred during the nine days. It is understood that Mr Li Ka-shing has no interest in the refinancing of the first payment. 'The drawdown of the facility for the HK$500 million is a short-term loan and is my private investment,' Mr Leung said by telephone last night. 'I didn't think I needed to tell Mr [Richard] Li about this.' Mr Leung said he has repaid all the funds drawn from the facility. Mr Leung said he contacted the Singapore Exchange after Pacific Century Regional Developments made an announcement on July 18 stating that Mr Richard Li and his associates did not have any personal interest in the PCCW deal. 'I clarified with my lawyer and contacted the Singapore Exchange on the arrangement of the drawdown of [Mr Li Ka-shing's] facility,' Mr Leung said. No facts were hidden about the financing, he said. A spokesman for Mr Li Ka-shing said Mr Leung had sought Mr Li's advice on the drawdown of that facility for PCCW's payment and had agreed to it. Mr Li does not have any interest in the funding of Mr Leung's acquisition of PCCW, the spokesman said. 'It is true, for Mr Li responded to the press on August 24 that he had no interest on the deal at that time,' he said. 'If the source of future funding of Mr Leung's first payment for the deal, which is due by the end of this year, came from [Mr Richard] Li's relations such as Li Ka-shing, or even as vendor financing from Richard Li, he, as the 75 per cent stakeholder in Pacific Century Regional Developments, should abstain from voting at the extraordinary shareholders meeting [to vote on the deal],' the source said. Mr Leung said: 'The response for forming the consortium is satisfactory and I will announce the full list of investors before the shareholders meeting of Pacific Century Regional Developments, which is expected no later than November 30.' He could not rule out whether Mr Li Ka-shing will be on the list.